Pinterest (PINS) Reports Q3: Everything You Need To Know Ahead Of Earnings

Social commerce platform Pinterest (NYSE: PINS) will be reporting results tomorrow after market hours. Here’s what to expect.

Pinterest met analysts’ revenue expectations last quarter, reporting revenues of $853.7 million, up 20.6% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but underwhelming revenue guidance for the next quarter. It reported 522 million monthly active users, up 12.3% year on year.

Is Pinterest a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Pinterest’s revenue to grow 17.5% year on year to $896.4 million, improving from the 11.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pinterest has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Pinterest’s peers in the social networking segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 67.9%, beating analysts’ expectations by 10.6%, and Snap reported revenues up 15.5%, topping estimates by 1.1%. Reddit traded up 41.9% following the results while Snap was also up 15.6%.

Read our full analysis of Reddit’s results here and Snap’s results here.

There has been positive sentiment among investors in the social networking segment, with share prices up 8.6% on average over the last month. Pinterest’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $42.72 (compared to the current share price of $32.98).

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