Social media platform Pinterest (PINS) is scheduled to report its earnings for the fourth quarter of 2024 after the market closes on Thursday, February 6. PINS stock has declined 16% over the past year on concerns about weakness in ad revenues from certain sectors. Meanwhile, analysts expect Pinterest to report Q4 2024 earnings per share (EPS) of $0.64, reflecting a 21% year-over-year growth.
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Further, Wall Street expects the company’s Q4 2024 revenue to rise by 16% to $1.14 billion. Pinterest delivered upbeat third-quarter results, but its Q4 outlook fell short of expectations. Management cautioned investors about continued weakness in the business from food and beverage advertisers. Nonetheless, Pinterest’s top line is expected to gain from its AI investments, which are helping to improve the experience for users and advertisers.
On Wednesday, peer Snap (SNAP) impressed investors with solid Q4 results.
Analysts Have a Cautious Stance Ahead of Pinterest’s Q4 Earnings
Ahead of the Q4 results, Roth MKM analyst Rohit Kulkarni slightly lowered his price target for Pinterest stock to $32 from $33 and maintained a Hold rating. The analyst is “marginally cautious” about the company’s Q4 results. While Kulkarni expects Pinterest to surpass expectations, he thinks that the Street and the buy-side estimates for Q1 2025 are a “tad bit too high.”
As part of a research note on Q4 earnings of internet companies, Piper Sandler analyst Thomas Champion said that he had a mixed view of Pinterest’s fourth-quarter results due to several reasons, including seasonality and weaker performance. He expects Q4 revenue of $1.1 billion (16% growth) and EBITDA of about $451 million, which he thinks are achievable. Champion maintained a Hold rating on PINS stock with a price target of $36.
Options Traders Anticipate a Major Move on PINS’s Q4 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 options traders are expecting a 13.1% move in either direction in reaction to Pinterest’s Q4 2024 results.
Is PINS Stock a Good Buy?
Wall Street is cautiously optimistic on Pinterest stock. With 16 Buys and eight Holds, PINS stock scores a Moderate Buy consensus rating. The average Pinterest stock price target of $38.65 implies about 16% upside potential.
