Shares of Pinterest Inc
The results came amid an exciting earnings season. Here are some key analyst takeaways.
Wedbush On Pinterest
Analyst Scott Devitt reiterated a Neutral rating, while reducing the price target from $46 to $37.
Although Pinterest reported healthy quarterly results, its guidance was disappointing, Devitt said in a note. "Expectations were elevated heading into results given a strong 1Q report and encouraging checks for 2Q," he added.
While the company's revenues came in around 1% higher than consensus, management projected a third-quarter year-on-year revenue growth of 16% to 18%, below consensus of 19%, the analyst stated. Investors are likely to be concerned around the sustainability of growth in the back half of 2024 and in 2025 due to tougher comps, he further said.
Goldman Sachs On Pinterest
Analyst Eric Sheridan maintained a Buy rating, while cutting the price target from $50 to $46.
Pinterest reported a "solid set of results" and management "painted a picture of continued steady revenue and margin trajectory," Sheridan said. The third-quarter guidance "as stable vs. our pre-earnings modeling against a multi-year revenue growth stack," he added.
Although Pinterest's adjusted EBITDA could "fluctuate in any given quarter, we still see 2024 as a year demonstrating PINS on a pathway to compounded multi-year margin expansion," the analyst wrote.
KeyBanc Capital Markets On Pinterest
Analyst Justin Patterson reaffirmed an Overweight rating, while lowering the price target from $45 to $43.
Pinterest reported revenue of $854 million, exceeding the consensus of $850 million, with EBITDA of $180 million coming in slightly above estimates of $179 million, Patterson said.
The third-quarter revenue guidance of $885 million to $900 million was below expectations of $912 million, "while non-GAAP opex of $485M-$500M compared to our/Street prior estimates of $512M/$495M," the analyst stated. "We view Pinterest as the latest earnings season example where expectations got a little too elevated into the print, such that results and guidance were not quite as strong as investors had hoped," he further wrote.
JPMorgan On Pinterest
Analyst Doug Anmuth reiterated a Neutral rating, while slashing the price target from $44 to $38.
Pinterest's third-quarter revenue growth guidance implies around 300 to 500 bps of deceleration from the second-quarter's 21% growth, "though it also includes ~100bps of FX headwind, ~500bps harder Y/Y comp relative to 2Q, & ongoing Food & Beverage softness," Anmuth wrote in a note.
Excluding currency impact and one-off items, the guidance suggests only a slight decline from the growth levels of the first half, the analyst stated. "PINS indicated that its overall ad trends were mostly stable, w/the exception of Food & Beverage which has been pressured now for the past 3 quarters, and that the underlying business remains strong," he added.
Benchmark On Pinterest
Analyst Mark Zgutowicz maintained a Hold rating on the stock.
While it was important for Pinterest to prove the rise in ARPUs in the first quarter was an inflection, "2Q saw a -180 bps deceleration, particularly on an easy comp," Zgutowicz said. The company is now facing tougher comps in the second half, he added.
"Management's +17% y/y midpoint revenue guide suggests further UCAN deceleration; we estimate 3Q UCAN ARPU growth of +11.6% y/y," the analyst wrote. The company's AI-driven content recommendations do not seem to be transferring to UCAN MAU growth, he further stated.
Stifel On Starbucks
Analyst Mark Kelley maintained a Buy rating, while cutting the price target from $46 to $45.
Pinterest's quarterly results were "solid," with revenues coming in $4 million higher than the high-end of the guidance range and adjusted EBITDA beating expectations, Kelley said.
The numbers have "plenty of room" to rise over the next 18 months or so, with 3P demand continuing to ramp, engagement resonating with advertisers, and Performance+ likely to "drive incremental budgets from both big brands and SMBs over time," he added.
PINS Price Action: Shares of Pinterest were down 13.5% to $32.30 at the time of publication on Wednesday.
