Pinterest ( NYSE: PINS ) is scheduled to announce Q2 earnings on Monday, Aug. 1, after market close.
Consensus EPS estimate is $0.18 (-28% Y/Y) and consensus revenue estimate is $663.19M (+8.2% Y/Y).
Over the last 2 years, PINS has beaten EPS and revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 8 upward revisions and 8 downward. Revenue estimates have seen 5 upward revisions and 19 downward.
Morgan Stanley lowered its estimates for companies in online advertising, citing weakening macro ad market. It said traffic data for PINS points to higher risk of a bear case playing out.
PINS shares spiked higher after WSJ reported that Elliott Management picked up an over 9% stake in the firm.
KeyBanc Capital said Elliott was likely attracted to PINS due to reasons including weak share price, stagnant user growth and "intrinsically" high margins.
Morgan Stanley said PINS saw a 9% Y/Y decline in time spent on its app in Q2, which it said was the "smallest amount of minutes since 2017".
Barclays cut price targets on social media firms including PINS, citing a "perfect storm" in the digital ad space.
J.P. Morgan cut estimates on firms in online ad space as it expects a weaker operating environment in H2 and into 2023.
PINS soared after it said Bill Ready - former executive at Google, PayPal and Venmo - would replace CEO Ben Silbermann. Baird said the move shows commerce is now a top priority .
Piper Sandler downgraded PINS as outlook for digital ad spending was normalizing. It said checks into PINS' health were "mixed" due to challenged audience growth and lack of new ad formats.
Q1 results recap:
- PINS shares surged after Q1 results beat expectations and guidance suggested stability.
- In a post-earnings call, CFO Todd Morgenfeld said headwinds to MAUs would stop in Q3, and though Q2 is usually the weakest in terms of MAUs, he expects growth to resume.
- Bank of America said it was on the sidelines because of PINS' "uncertain transition" and users may bottom in Q2. Stifel said management was "making the right product changes", but more was needed to change its mindset.
- Benchmark said it expects PINS to struggle with "scale beyond its niche female at-home demo".
SA contributor Cestrian Capital Research in a bullish analysis said PINS has strong fundamentals, low valuation and its new CEO hire could be positive.
For further details see:
Will Pinterest post results beat in Q2 despite bearish outlook for ad market?