Pinterest reports earnings after the market closes Thursday.
Dreamstime
Pinterest is set to report earnings after the market closes on Thursday. If recent quarterly reports from the image-sharing platform are any indicator, investors better buckle up.
In the day following the company’s eight most recent earnings reports, shares of Pinterest (ticker: PINS
) have averaged a staggering 17.8% absolute move up or down, according to Dow Jones Market Data. The stock, on average, has gained 1.7% during that period. In the two most recent quarters, shares declined 18% on July 30 and 14.5% on April 28.
During its second-quarter report, the company disclosed that the unwinding of pandemic lockdowns weighed on user growth. Several analysts downgraded the stock following the earnings release.
For the third quarter, Wall Street’s consensus estimate calls for adjusted earnings of 22 cents a share and sales of $631 million. Analysts are looking for average revenue per user to improve sequentially to $1.38 from $1.32 in the second quarter, with monthly active users growing to 460 million from 454 million in the second quarter.
Pinterest made headlines last month following a Bloomberg report that PayPal was exploring a possible acquisition. While Pinterest shares soared briefly, the idea was widely panned by Wall Street. PayPal later said it wasn’t currently pursuing such a deal, sending Pinterest shares tumbling.
Investors will also be watching to see the impact of Apple
‘s iOS privacy changes. The company now asks users if they want to opt into tracking. When users opt out, it makes things more difficult for companies like Pinterest to assess the effectiveness of online ads. Pinterest stock fell last month following results from advertising-focused peers that took a hit from the changes.
Write to Connor Smith at [email protected]
