Pinterest (PINS) Is About to Report Q2 Earnings. Here's What to Expect

Business Insider

a day ago

Social media platform Pinterest (PINS) is scheduled to announce its second-quarter results after the market closes on Thursday, August 7. PINS stock has rallied about 35% year-to-date, driven by strong performance from peers in the digital ad space, such as Meta Platforms (META), the adoption of artificial intelligence (AI) to enhance ad offerings, and the company's improving performance. Wall Street expects Pinterest to report earnings per share (EPS) of $0.35, reflecting an increase of about 21% compared to the prior-year quarter.
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Revenue is projected to rise about 14.2% to $974.93 million. These expectations indicate a resilient performance despite the ongoing macro uncertainties.
Analysts' Views Ahead of Pinterest's Q2 Earnings
Heading into Q2 results, Guggenheim analyst Michael Morris increased the price target for Pinterest stock to $44 from $39 and maintained a Buy rating. The 5-star analyst remains confident about PINS stock, noting that the company is in the early stages of its monetization opportunity. He highlighted that the two primary near-term growth drivers are the progress on Performance+ (particularly AI-related investments) and expanding strategic partnerships (Magnite (MGNI), Instacart (CART), LTK Influencer Content, Amazon (AMZN) /Google (GOOGL) integrations).
Morris expects Q2 revenue growth of 14.4%, which is towards the higher end of management's guidance range of 12% to 15%. The analyst noted that Alphabet's Q2 results and outlook suggest strength in demand for direct response advertising since the first-quarter earnings. Morris expects Pinterest's profitability to continue to increase throughout the year, though at a slowing rate of margin expansion due to rising AI-related investments.
Likewise, Benchmark analyst Mark Zgutowicz increased the price target for Pinterest stock to $48 from $45, while maintaining a Buy rating. The 5-star analyst contends that the expectation that Q2 and 2025 revenue and EBITDA will be relatively in line with consensus estimates seems conservative. Zgutowicz likes the setup heading into the Q2 print for multiple reasons, including multi-quarter investments in GPU-enabled innovations.
The analyst also noted performance-driven market share gains within the Enterprise business, as new products broaden advertiser prospects to $1 billion-$30 billion of annualized gross merchandise value (GMV).
AI Analyst Is Bullish on Pinterest Stock Ahead of Q2 Print
Interestingly, TipRanks' AI stock analyst has assigned an Outperform rating to Pinterest stock with a price target of $41, indicating 4.9% upside potential. TipRanks' AI analysis indicated that solid financial performance and favorable earnings call sentiment are the primary drivers of the bullish stance on PINS stock. The AI analysis also noted strong revenue growth, high gross margins, as well as strategic focus on AI advancements and international expansion.
Here's What Options Traders Anticipate Ahead of PINS' Q2 Earnings
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that move in either direction in PINS stock in reaction to Q2 results.
Is PINS a Good Stock to Buy?
Overall, Wall Street has a Strong Buy consensus rating on Pinterest stock based on 24 Buys and four Hold recommendations. The average PINS stock price target of $42.68 indicates 9.2% upside potential from current levels.