Will Pinterest (PINS) Beat Estimates Again in Its Next Earnings Report?

If you're considering investments in companies known for consistently exceeding earnings expectations, Pinterest (PINS) should be on your radar. This social media platform, famous for its digital pinboard and shopping capabilities, has shown strong potential for another earnings surprise in its upcoming report.

In the last two earnings releases, Pinterest has established a notable trend by outperforming estimates. On average, the company has exceeded its earnings predictions by 23.21% over these two quarters.

In the most recent quarter, Pinterest reported earnings of $0.29 per share, compared to an estimate of $0.28, resulting in a surprise of 3.57%. Previously, it was predicted that the company would earn $0.14 per share, but it actually reported $0.20, leading to a significant surprise of 42.86%.

Recent Estimates and Earnings Potential

Considering the strong earnings history, analysts have been raising their estimates for Pinterest. The Zacks Earnings ESP (Expected Surprise Prediction) for the company is currently positive, which bodes well for a potential earnings beat. This positive ESP, combined with Pinterest's Zacks Rank of #3 (Hold), suggests that it may be likely for the company to exceed earnings expectations once again.

Research indicates that stocks with both a positive Earnings ESP and a Zacks Rank of #3 or better have successfully surprised estimates nearly 70% of the time. This means that if you were to look at ten stocks fitting this criterion, around seven could potentially surpass their consensus estimates.

Understanding the Earnings ESP

The Zacks Earnings ESP assesses the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for the upcoming quarter. The Most Accurate Estimate is a refined version of the consensus that reacts to last-minute analyst changes. Analysts adjusting their estimates just before the earnings announcement often possess the latest insights, potentially leading to more accurate predictions.

Pinterest currently boasts an Earnings ESP of +1.69%, indicating optimism among analysts regarding its earnings outlook. This positive ESP, coupled with its Zacks Rank of #3, suggests that investors may be positioned for another encouraging earnings report in the near future, with the next announcement expected on November 7, 2024.

Considerations for Investors

It’s important to note that a negative Earnings ESP can diminish the likelihood of a stock's ability to exceed estimates. However, a negative figure alone does not guarantee that a company will miss its earnings projections.

Throughout the market, many companies might beat their consensus EPS estimates without seeing significant stock price movement. Conversely, some stocks can maintain or even increase their value despite not meeting expectations. Therefore, checking a company’s Earnings ESP prior to its quarterly release is key for enhancing your investment strategies. To maximize your investment success, consider using an Earnings ESP Filter to identify the most promising stocks before they report their earnings.

Pinterest, earnings, stocks