Shares of Pinterest (PINS) are up 12% after the social media company issued better-than-expected forward guidance.
The San Francisco-based company that allows users to share images via digital pin boards reported earnings per share of $0.23, which was below the $0.25 expected on Wall Street. Revenue in the year’s first quarter totaled $855 million, which was ahead of the $847 million consensus forecast of analysts.
While the Q1 numbers were mixed, Pinterest issued a bullish outlook that has sent its share price higher in after hours trading. Management said second-quarter sales should come in between $960 million and $980 million, which at the midpoint is higher than analyst expectations that called for $966 million.
Pinterest’s monthly active users. Source: Main Street Data
Active Users
Also giving PINS stock a lift is the fact that the company reported having 570 million monthly active users in the first quarter, ahead of Wall Street estimates of 565 million. The company recorded $1.52 in first quarter global average revenue per user, which was in line with analysts’ estimates.
“As the macroeconomic and digital ad landscape evolves, our strategy and consistent execution has made Pinterest more resilient than ever,” said CEO Bill Ready in the company’s earnings statement. “The fundamentals in the business are strong and we’re continuing to see healthy growth.”
Prior to today (May 8), PINS stock had declined 4% this year.
Is PINS Stock a Buy?
The stock of Pinterest has a consensus Strong Buy rating among 25 Wall Street analysts. That rating is based on 19 Buy and six Hold recommendations assigned in the last six months. The average PINS price target of $38.07 implies 36.50% upside from current levels. These ratings are likely to change after the company’s financial results.
