PINS Set to Report Q1 Results: Will Top-Line Growth Boost Earnings?

Pinterest, Inc. PINS is scheduled to report first-quarter 2025 results on May 8, after the closing bell. The company pulled off a trailing four-quarter earnings surprise of 13.24%, on average. It is expected to witness top-line expansion year over year, driven by increasing user engagement in the United States, Canada and Europe. Initiatives to introduce artificial intelligence (AI) and automation-powered ad products and rising engagement among Gen Z users are positive factors. Factors at PlayPinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporating sophisticated AI models to enhance relevancy and personalization is likely to have generated incremental revenues in the to-be-reported quarter. It also emphasizes building new ad tools and formats to help grow the scope of monetization on the platform. Enhancements in lower funnel solutions like mobile deep linking, shopping ads and API for conversions are providing a sustained return on investment to advertisers. This will enable advertisers to measure the results and conversion rates, which will improve their decision-making.  Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long run. The company is taking various initiatives to bring more actionable content to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets. This has resulted in a solid improvement in engagement metrics like sessions, impressions and saves across all regions. Rising engagement among Gen Z users is a positive factor. Management's decision to increase the accessibility of the mobile deep linking product to more advertisers has improved shoppability on the platform. These developments are expected to have a positive impact on the first-quarter results. Overall ExpectationsOur estimate for average revenues per user (ARPU) from the United States and Canada is pegged at $6.86. Our estimate for Europe’s ARPU is pegged at $0.9. Per our estimate, monthly active users (MAUs) from the United States and Canada are expected to be 98.8 million in the first quarter. MAUs from Europe are approximated to be 143.6 million. MAUs from the rest of the world are estimated to be 297.1 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $845.74 million, suggesting an increase from the year-ago quarter’s reported figure of $739.98 million. The consensus estimate for adjusted earnings per share is pegged at 25 cents, up from 20 cents reported in the prior year.Earnings WhispersOur proven model does not conclusively predict an earnings beat for Pinterest this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is not the case here.Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter Pinterest, Inc. Price and EPS Surprise Pinterest, Inc. price-eps-surprise | Pinterest, Inc. QuoteZacks Rank: Pinterest currently has a Zacks Rank #3.Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:The Earnings ESP for TELUS Corporation TU is +6.06% and carries a Zacks Rank of 3 currently. The company is scheduled to report quarterly numbers on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.The Earnings ESP for Advanced Micro Devices AMD is +0.74% and carries a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on May 6.Fortinet FTNT is set to release quarterly numbers on May 7. It has an Earnings ESP of +3.77% and a Zacks Rank #3 at presentOnly $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TELUS Corporation (TU): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks