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Could Pinterest’s Q1 Earnings Report Boost Its Stock?

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Pinterest (NYSE:PINS) stock fell 4.4% on May 1 and closed at $19.75 with a market cap of $11.5 billion. The stock was trading 46.4% below its 52-week high of $36.83. Meanwhile, the stock was trading 95.5% above its 52-week low of $10.10.

On May 1, the S&P 500 and the Dow Jones indices fell by 2.8% and 2.6%, respectively. Snap (NYSE:SNAP) and Facebook (NASDAQ:FB) returned -4.7% and -1.2%, respectively, on the same day.

What can investors expect from Pinterest’s first-quarter results? The social media company will likely post its earnings results on Tuesday, for the March ended quarter, after the market close.

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Pinterest’s Q1 earnings expectations

As stated in the preliminary results, Pinterest could report revenues of $269 million–$272 million for the first quarter. The company will likely report global MAUs (monthly active users) of 365 million–367 million for the quarter. Pinterest’s US MAUs will likely be 89 million–90 million. Meanwhile, the company’s international MAUs could be 276 million–277 million.

Wall Street analysts expect Pinterest to report sales of $270.1 million in the first quarter—a rise of 33.8% YoY (year-over-year) compared to $201.91 million in the first quarter of 2019. Also, analysts expect the technology company to report a non-GAAP EPS of -$0.09 in the first quarter compared to -$0.32 in the same quarter last year.

Analysts also expect Pinterest’s revenues to rise by 13.8% YoY in 2020 to $1.3 billion. The sales could rise by 34.4% YoY in 2021 to $1.7 billion. The adjusted earnings will likely fall to -$0.07 per share in 2020 from $0.00 per share in 2019. However, the profits could rise to $0.16 per share in 2021.

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Analysts’ recommendations for Pinterest stock

Pinterest stock is tracked by 25 Wall Street analysts. Among the analysts, 12 recommend a “buy,” 12 recommend a “hold,” and one recommends a “sell.” Analysts’ mean target price on the stock is $22.17, which implies a 12.3% gain from the current level of $19.75. The consensus target price for the stock has fallen from $25.71 in April—a fall of 13.8%.

Snapchat and Facebook have average broker target prices of $17.41 and $238.13, respectively. These figures imply returns of 3.7% and 17.7%, respectively, over the next 12 months.

Peer comparison

In the first quarter, Snapchat reported revenue of $462.5 million, which grew 44.3% YoY from $320.4 million in the first quarter of 2019. The company beat analysts’ consensus revenue estimate of $428.8 million. The company’s adjusted EPS of -$0.08 was below analysts’ estimates of -$0.07 per share in the first quarter. However, the company posted non-GAAP EPS of -$0.10 in the first quarter of 2019. Snap reported global DAUs (daily active users) of 229 million in the first quarter. Read Why Are Snap’s Q1 Earnings Impressive? to learn more.

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In the first quarter, Facebook reported revenue of $17.7 billion, which grew 17.6% from $15.1 billion in the first quarter of 2019. The company beat Wall Street analysts’ consensus revenue estimate of $17.44 billion. Facebook’s adjusted EPS of $1.71 was below analysts’ estimates of $1.75 per share in the first quarter. The social media company reported an adjusted EPS of $1.89 in the first quarter of 2019. Facebook’s DAUs reached 1.73 billion on average for March 2020—up 11% YoY. The company reached MAUs of 2.60 billion as of March 31—up 10% YoY. Read Facebook Stock Could Rise More after Its Q1 Earnings to learn more.

Pinterest’s stock returns

Based on the closing price on May 1, Pinterest stock was trading 10.4% above its 20-day moving average of $17.89. The stock is also trading 16.9% above its 50-day moving average of $16.90 and 4.7% above its 100-day moving average of $18.86.

Pinterest’s 14-day relative strength index number is 60. The number indicates that the stock isn’t overbought or oversold. Pinterest has an upper Bollinger Band level of $21.94. The company’s middle Bollinger Band level is $17.89, while its lower Bollinger Band level is $13.84. On May 1, Pinterest stock closed near its middle Bollinger Band level, which indicates that it isn’t overbought or oversold.

Read Pinterest Stock Rose 14% after Great Business Update and Why Is Pinterest Stock Attractive Right Now? to learn more.

Stay tuned to learn how Pinterest performed in the first quarter.

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