Image Source: Pexels

Pinterest (PINS) is expected to announce fourth-quarter results on Thursday, February 8 after the market close, with a conference call scheduled for 4:30 pm EDT. What to watch for:

GUIDANCE: In October, Pinterest forecast fourth-quarter revenue growth of 11%-13% vs. last year, with non-GAAP operating expenses down in the 9%-13% range year-over-year. Analysts currently expect Pinterest to report Q4 revenue of $990M.

KeyBanc expects Pinterest to report a solid Q4 and guide to 15%-17% year-over-year revenue growth. KeyBanc's view reflects a solid ad market for retail/e-commerce and CPG, as well as product innovation and partnerships. 

EXPECTATIONS CAPTURED AT CURRENT LEVELS: Roth MKM said that Pinterest is one of the highest quality SMID-cap Internet stocks with identifiable catalysts and the firm remains constructive on Pinterest over the longer term, but in the near-term, the rising expectations for Q1 and 2024 are fairly captured at current valuation levels. 

CHANNEL CHECKS: Evercore ISI raised the firm's price target on Pinterest to $50 from $45 and kept an Outperform rating on the shares. Following the firm's proprietary tracking and analysis of Pinterest's Amazon (AMZN) partnership and a series of channel checks, the firm is "materially" raising estimates reiterating shares as its number one small-to-mid cap long in the internet space. The firm now estimates 20% revenue growth in FY24 and notes that its FY25 revenue, EBITDA free cash flow estimates are "now notably above consensus." 

HIGHER ENGAGEMENT: Argus upgraded Pinterest to Buy from Hold with a $45 price target on January 18. More than half of the company's users have intention to purchase prior to visiting the Pinterest platform, and the firm sees more of these users, higher engagement, increased ad prices and higher ad loads to drive growth, the analyst tells investors in a research note. In order to increase shopping, Pinterest is adding products, using AI to make better recommendations, and partnering with Amazon to increase ad loads and add new advertisers, Argus added.

More By This Author:

Here's What Wall St. Experts Are Saying About PayPal Ahead Of Earnings
What Wall Street Experts Are Saying About BABA Ahead Of Earnings
Maker Of Wilson Tennis Rackets Raises $1.37 Billion In Discounted IPO