Pinterest Exceeds Q3 Expectations, Shares Soar 13% After-Hours

Pinterest Exceeds Q3 Expectations: Pinterest (PINS.N) Surpasses Q3 Earnings Expectations, Shares Rise 13% in After-Hours Trading. Pinterest pleasantly surprised investors with its third-quarter financial performance. The stabilizing digital advertising market lured marketers to the image-sharing platform, prompting a 13% surge in the company’s shares during aftermarket trading.

CFO Julia Donnelly stated that Pinterest anticipates a 600 basis points expansion in adjusted core earnings margin for 2023, compared to the prior estimate of 400 basis points. These results contribute to the optimism surrounding a market rebound, especially after major industry players like Alphabet (GOOGL.O), Meta Platforms (META.O), and Snap (SNAP.N) all exceeded quarterly revenue expectations last week, benefiting from an upswing in their advertising business.

Pinterest’s concerted efforts, including enhancing the effectiveness of its ads in terms of conversion, are paying off, making it an outperformer in the current landscape, as noted by DA Davidson analyst Tom Forte.

Partnerships with giants like Amazon.com (AMZN.O) to boost shopping on the Pinterest app are driving Pinterest’s success. Analysts, including those at Bernstein, are optimistic about the potential for these partnerships to bolster the company’s fourth-quarter revenue.

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For the quarter ending on September 30, Pinterest recorded revenue of $763.2 million, marking an 11.5% increase compared to Wall Street‘s estimates of $743.5 million. The platform’s global monthly active users (MAUs) also climbed by 8% to reach 482 million.

In terms of earnings, Pinterest exceeded expectations, reporting a profit of 28 cents per share, while analysts had anticipated 20 cents a share.

Looking ahead, Pinterest foresees Q4 revenue growth in the range of 11-13% year-over-year, surpassing the estimated 11.3% revenue growth.

Despite facing a minor short-term impact due to the Middle East conflict, which led to some advertisers temporarily pausing their spending, Pinterest noted the return of these advertisers.

Notably, last month, media research and investment firm Magna raised its forecast for U.S. ad spending growth to 5.2% from 4.2% for 2023, with expectations of a 9.6% rise in digital ad sales during that period.

 

Our Reader’s Queries

How high can Pinterest stock go?

According to 28 Wall Street analysts, the average price target for Pinterest is $38.17, based on their 12-month price targets issued in the past 3 months. The highest analyst price target is $48.00, while the lowest forecast is $29.00. This means that the average price target represents a 2.17% increase from the current price of $37.36.

What is Pinterest earnings prediction?

Analysts are feeling optimistic about Pinterest’s earnings potential, with an Earnings ESP of +4.33%. This positive outlook is further supported by the stock’s Zacks Rank #3 (Hold), indicating that another earnings beat could be on the horizon.

What were Pinterest earnings in the third quarter?

Pinterest, the social media giant, has exceeded expectations with its latest earnings report. The company’s revenue has increased by 11%, leading to a surge in PINS stock. In the third quarter, which ended on September 30th, Pinterest reported an impressive $763 million in revenue and adjusted earnings of 28 cents per share. This is great news for investors and shows that Pinterest is continuing to thrive in the competitive world of social media.

What is Pinterest revenue for 2023?

Revenue is the primary source of income for any business, and it’s the starting point for calculating net income. In the third quarter of 2023, Pinterest’s revenue was $0.763B, which is an 11.49% increase compared to the same period last year.