![]() Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).How Have the Numbers Shaped Up for Pinterest?For Pinterest, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. ![]() Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.Please note that a negative Earnings ESP reading is not indicative of an earnings miss. However, the model's predictive power is significant for positive ESP readings only.A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. Our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction) - has this insight at its core.The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.Price, Consensus and EPS SurpriseEarnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. On the other hand, if they miss, the stock may move lower.While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.Zacks Consensus EstimateThis digital pinboard and shopping tool company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +84.6%.Revenues are expected to be $627.57 million, up 41.8% from the year-ago quarter.Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. Pinterest is uniquely positioned to tackle unsolved problems in our industry, capitalize on long-term digital commerce trends and help people go from inspiration to realization,” said Bill Ready, CEO of Pinterest.Pinterest (PINS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2021. “We accelerated our investment in shopping and ecommerce this quarter, and I am thrilled by the dedication of our leaders and employees to continue to build a positive place on the Internet. Analysts were looking for a slightly bigger number.Ĭheck this space to read management/analysts’ comments on Pinterest’s Q2 2022 earnings ![]() Meanwhile, revenues increased 9% annually to $665.9 million during the three-month period, with all three geographical segments registering growth. The bottom line also missed the consensus forecast. On an unadjusted basis, it was a net loss of $43.1 million or $0.07 per share, compared to a profit of $69.4 million or $0.10 per share in the same period of 2021. Second-quarter earnings, adjusted for one-off items, dropped to $0.11 per share from $0.25 per share a year earlier. ![]() (NYSE: PINS) Monday reported a decline in second-quarter adjusted earnings, despite an increase in revenues. ![]()
0 Comments
Leave a Reply. |