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

Investors looking for stocks with a history of surpassing earnings estimates should pay attention to Pinterest (PINS). This social media platform, which allows users to create, share, and discover visual content, seems well-positioned to continue its trend of positive earnings surprises in its upcoming quarterly report.

Looking back at Pinterest's last two earnings reports, it is clear that the company has maintained a strong track record of exceeding expectations. Over these two quarters, Pinterest managed an impressive average earnings surprise of 23.21%.

In its most recent quarter, Pinterest reported earnings of $0.29 per share, slightly above the Zacks Consensus Estimate of $0.28. This produced a surprise of 3.57%. The quarter before that, analysts had predicted earnings of $0.14 per share, but Pinterest achieved $0.20, resulting in a remarkable surprise of 42.86%.

Price and EPS Surprise

Given this solid earnings history, recent analyst estimates for Pinterest have risen. The Zacks Earnings ESP (Expected Surprise Prediction) for the company is currently positive, indicating a strong possibility of another earnings beat. This is particularly encouraging when combined with Pinterest's respectable Zacks Rank.

Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better have a nearly 70% probability of surprising positively. In simpler terms, if you select 10 stocks that meet this criteria, around seven of them could surpass consensus estimates.

The Zacks Earnings ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate reflects the most recent analyst adjustments, giving it potential for increased accuracy compared to earlier predictions.

At present, Pinterest has an Earnings ESP of +1.69%, which suggests that analysts have recently become optimistic regarding the company's earning potential. This positive metric, along with its Zacks Rank of #3, points towards a significant chance of a beat in the upcoming earnings report, expected to be released on November 7, 2024.

While a negative Earnings ESP can diminish the reliability of its predictive power, it is crucial to note that it does not inherently mean a company will miss earnings expectations.

A number of companies frequently exceed EPS consensus estimates, yet this alone may not determine their stock performance. Conversely, there are instances where stocks maintain stability, even if they fall short of expectations.

For this reason, it is essential to check a company's Earnings ESP before a quarterly release to increase the likelihood of an informed decision. The Earnings ESP Filter provides a valuable tool to identify the best stocks to consider before earnings announcements.

Pinterest, earnings, surprise