Pinterest’s stock price surged over 18% in after-hours trading following the release of its fourth-quarter earnings report. Despite missing earnings expectations, sales came in ahead of estimates, and a strong first-quarter forecast helped alleviate investor concerns.
For the December-ended quarter, Pinterest earned an adjusted $0.56 per share on sales of $1.15 billion, surpassing analyst projections of 64 cents per share on sales of $1.14 billion. The company’s monthly active users increased by 11% to 554 million, exceeding estimates for 547 million.
Pinterest’s guidance for the first quarter is more optimistic than expected, with a forecast of $844.5 million in sales at the midpoint of its range. This marks a significant improvement over analysts’ previous projections of $836 million.
Chief Executive Bill Ready attributed the company’s strong results to its focus on driving shopping through the platform and partnerships with major companies like Amazon and Alphabet. The partnership with Amazon, which displays product ads on Pinterest feeds, has been particularly successful.
While Pinterest’s stock market performance is not as robust as some other growth stocks, its IBD Relative Strength Rating of 25 out of 99 indicates that it has outperformed just a quarter of all stocks in the database over the past year. The company also boasts a strong EPS Rating of 97 out of 99, suggesting strong earnings growth for recent quarters.
Overall, Pinterest’s Q4 results and guidance have boosted investor confidence, sending its stock price higher in after-hours trading.
Source: https://www.investors.com/news/technology/pinterest-stock-pins-q4-2024-earnings