Spencer Platt/Getty Images News
Image-sharing platform Pinterest (NYSE:PINS) is set to report its third-quarter earnings on Monday, with investors looking out for more information on its Amazon (AMZN) partnership, ad tech improvements and improving monetization.
The digital ad market is growing in the middle of a complex macroeconomic outlook in the U.S. with increased consumer spending, persistent inflation and interest rates that may continue to rise.
In September, PINS provided the company’s three to five year targets of compound annual growth of revenues in the “mid-to-high teens” and adjusted EBITDA margins in the “low 30s” over that time frame.
Social media platform companies, including Meta (META) and Snap (SNAP), have been warning about volatility and softness in advertising demand correlating with the start of the Israel-Hamas conflict.
Investment firm Jefferies sees Pinterest (PINS) as having an “improving position as a commerce-focused ad platform,” resulting in an increase in revenue, coming in-line with targets over the next several years.
Seeking Alpha analyst Geoffrey Seiler noted, “Pinterest has the opportunity to improve monetization and ARPU of its user base, particularly with international users.”
Wall Street analysts expect the San Francisco, California-based company to post earnings per share of 20 cents on revenues of $743.33 million, which would mark a jump of 8.5% year-over-year.
Pinterest (PINS) has seen substantial changes to its estimates in the past three months. Earnings per share forecasts have been revised downward one time, compared to just 11 upward revisions, while revenue estimates have been revised down six times vs. 15 upward moves.
Seeking Alpha analysts at large consider PINS a Buy. This compares with average Wall Street rating of Buy and SA Quant rating of Hold.
