Pinterest (NYSE:PINS) Posts Earnings Results, Misses Estimates By $0.03 EPS

Pinterest (NYSE:PINS) issued its quarterly earnings data on Thursday. The company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.49 by ($0.03), FiscalAI reports. Pinterest had a net margin of 5.46% and a return on equity of 7.49%. The business had revenue of $1.17 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the prior year, the company posted $0.38 EPS. The business’s revenue for the quarter was up 11.9% on a year-over-year basis.

Here are the key takeaways from Pinterest’s conference call:

• Q3 revenue missed expectations, coming in at $1.174 billion, up 12% year over year. European de minimis regulatory changes caused cross-border sellers to pull back more than anticipated, while international go-to-market restructuring added pressure.
• Pinterest expects continued near-term pressure in international markets, with Q4 revenue guidance of $1.425 billion to $1.475 billion, representing only 8% to 12% growth. Management does not expect cross-border spending to recover during the holiday period.
• User momentum remained strong, with global MAUs reaching a record 661 million, up 10%, and engagement in UCAN deepening faster than user growth. UCAN revenue grew 14% in Q3 and 15% year to date, demonstrating progress in Pinterest’s performance-advertising strategy.
• Pinterest is expanding AI-driven monetization through Pinterest Assistant, Visual Search Ads, improved bidding, and programmatic partnerships. Approximately 80% of Pinterest Assistant searches are commercial, while an early advertiser test showed a 77% increase in new-customer return on ad spend using Pinterest’s measurement integration.
• Q3 adjusted EBITDA was $339 million, with a 29% margin, and trailing 12-month free cash flow reached nearly $1.26 billion. However, Pinterest expects increased infrastructure and GPU spending in Q4 while maintaining its full-year adjusted EBITDA margin target of approximately 30%.

Pinterest Price Performance

NYSE PINS traded down $1.00 during trading hours on Thursday, reaching $19.92. The company’s stock had a trading volume of 45,160,171 shares, compared to its average volume of 11,619,233. The firm has a market capitalization of $11.16 billion, a price-to-earnings ratio of 53.64, a P/E/G ratio of 1.49 and a beta of 0.90. The company’s 50-day moving average is $20.71 and its two-hundred day moving average is $20.83. The company has a debt-to-equity ratio of 0.34, a current ratio of 3.81 and a quick ratio of 3.81. Pinterest has a 1-year low of $13.84 and a 1-year high of $34.12.

Wall Street Analyst Weigh In

Several research firms have recently commented on PINS. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Pinterest in a report on Monday. Susquehanna restated a “positive” rating on shares of Pinterest in a research report on Wednesday, August 5th. Citigroup upped their price target on shares of Pinterest from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Morgan Stanley upped their price target on shares of Pinterest from $30.00 to $32.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Finally, Mizuho increased their price target on Pinterest from $31.00 to $32.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $27.67.

Insiders Place Their Bets

In other news, insider Claude Leonard Brown sold 12,240 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $20.00, for a total value of $244,800.00. Following the completion of the sale, the insider directly owned 1,130,768 shares in the company, valued at $22,615,360. The trade was a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Benjamin Silbermann sold 46,875 shares of the company’s stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $22.56, for a total value of $1,057,500.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 692,877 shares of company stock valued at $14,733,501 in the last three months. 8.09% of the stock is currently owned by company insiders.

Pinterest News Summary

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Global monthly active users increased 10% year over year to a record 661 million, while third-quarter revenue rose 11.9% to $1.17 billion. Adjusted EBITDA reached $339 million, operating cash flow was $316 million and free cash flow was $300 million. Pinterest third-quarter results
• Positive Sentiment: Pinterest expanded programmatic advertising deals worldwide, allowing large advertisers to purchase display and video inventory through existing demand-side and supply-side platforms. The move could improve advertiser access and support monetization over time. Pinterest programmatic advertising expansion
• Neutral Sentiment: Some analysts remain constructive: KeyCorp maintained an “overweight” rating despite lowering its price target from $30 to $28. However, analyst targets may not offset concerns about the latest earnings miss. KeyCorp Pinterest price target
• Negative Sentiment: Third-quarter revenue of $1.17 billion missed estimates near $1.21 billion, while non-GAAP earnings of $0.46 per share came in below the $0.49 consensus. GAAP diluted EPS was reported at $0.04, and operating profit and net income declined sharply year over year. Pinterest third-quarter earnings miss
• Negative Sentiment: Fourth-quarter revenue guidance of approximately $1.45 billion was about 4.7% below analysts’ expectations, reinforcing fears that Pinterest’s revenue growth is slowing. This weaker outlook was the primary catalyst for the stock’s decline. Pinterest outlook and slowing revenue growth
• Negative Sentiment: Recent insider activity shows substantial selling and no reported insider purchases over the past six months, a potential negative signal for investor sentiment.

About Pinterest

Pinterest, Inc (NYSE: PINS) operates a visual discovery platform that helps people find ideas and inspiration for activities such as home improvement, cooking, fashion, travel and event planning. Users can discover, save and organize images and videos—known as Pins—on personalized boards and explore recommendations based on their interests.

The company also provides tools for businesses and creators to showcase products and content on the platform. Its advertising business includes promoted Pins and other advertising formats designed to help marketers reach users while they are discovering ideas, researching products and planning purchases.