Pinterest Q3 Earnings Preview: Spotlight On Amazon Partnership, Global User Revenue

Visual discovery company Pinterest Inc PINS will be reporting its third-quarter earnings after market close on Monday, Oct. 30. For Q3 2023, Wall Street analysts expect PINS to report $0.20 in EPS and $743.4 million in revenue.

Pinterest Q3 Earnings: What Analysts Would Watch Closely

Pinterest’s monetization strategies from international markets appear to be working well for now. The company is increasing its average revenue per user (ARPU), largely attributable to its expansion beyond the U.S. and Canada.

There is significant upside remaining for the company, with Australia, Japan and Latin America offering monetization potential. The European market is already clocking in higher ARPU for the firm with each passing quarter. Over the next 3–5 years, the Pinterest expects to grow revenue in the mid-to-high teens and reach about 30% in EBITDA margin.

Recovering ad spends and the Amazon.com Inc AMZN partnership are expected to serve as key catalysts for the stock. The company’s R&D spends are also reflecting some moderation.

However, maintaining and increasing ARPU in a highly competitive market and continued monetization from new markets remain variables that could impact the business and/or the stock in the future.

Read: Seaport Global Initiates Coverage On Pinterest with Buy Rating, Announces Price Target of $33

PINS Stock Performance, Analyst Price Target

The stock’s performance versus its sector is indicative of its resilience to general market and industry downswings. Over the past year, PINS stock is up 11.3% while its sector is down about 8%. Over the last nine months, PINS is down about 9% with its sector down about 22%.

The latest price target for PINS stock was reported as $33/share by Seaport Global analyst Aaron Kessler on Oct. 24 (representing a possible 34.8% upside within the next 12 months) who initiated coverage on the stock. 

A total of 54 analyst firms have reported ratings on PINS stock in the last year. Mohammed Khallouf from HSBC has also recently initiated coverage of the stock with a Buy rating and a price $32.1, while analyst Mark Kelley of Stifel upgraded his stance on PINS stock from Hold to Buy. His price target stands at $32.

The consensus price target for PINS (over 120 analysts, last 3 years) stands at $29.70, also representing an upside from the current price level.

The company has a history of beating consensus with 11 EPS beats and 10 revenue beats over the past 12 quarters. The Street is definitely expecting another beat, after hours.

Price Check: Shares of PINS were up 1.19% to $24.65 at the time of publication Monday.

Now Read: Amazon Q3 Earnings Showcase Resilience: 3 Key Catalysts Strengthen Fundamental Value

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