BofA Securities analyst Justin Post lowered estimates for Pinterest, Inc.
The analyst slightly reduced the estimates due to ongoing weakness in the F&B ad category, tough comps and foreign exchange (FX) impacts.
Fourth-quarter revenue is lowered by $4 million for FX, now expecting 16% Y/Y growth (vs. prior guide of 15%-17%), added the analyst.
Post lowered revenue estimate to $817 million and EBITDA by 7% to $132 million for the first quarter.
The analyst said concerns are rising that first quarter Street estimates may be too high and he now expects 10% revenue growth, below the 14% consensus, factoring in pressures from Leap Year/Easter, FX and F&B.
Also, for 2025, Post cut revenue by 1% to $4.1 billion and EBITDA by 2% to $1.18 billion, but expect growth to accelerate post-first quarter, reaching 15% in the fourth quarter.
Sentiment may improve in 2025 with potential acceleration post-first quarter, driven by AI solutions, 3P deals and stabilizing F&B growth, adds the analyst.
Post projected management to outline a return to long-term growth rates and highlight margin improvement despite a 15% y/y headcount increase in the third quarter.
Investors can gain exposure to Pinterest through Global X Social Media ETF
PINS Price Action: Pinterest shares are down 1.23% at $31.42 at publication Wednesday.
