![]() ![]() Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. Our proprietary surprise prediction model - the Zacks Earnings ESP (Expected Surprise Prediction) - has this insight at its core. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.Įstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The consensus EPS estimate for the quarter has been revised 57.9% lower over the last 30 days to the current level. Revenues are expected to be $665.4 million, up 8.5% from the year-ago quarter. This digital pinboard and shopping tool company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -32%. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. On the other hand, if they miss, the stock may move lower. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 1. ![]() This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. His background reflects Pinterest's plan to push big into the e-commerce space.The market expects Pinterest (PINS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2022. Ready joined Pinterest from Alphabet's Google, where he led the company's commerce and payments initiatives. In late June, Ready took the reins from co-founder Ben Silbermann, who transitioned to the role of executive chairman. The upcoming report will be the first released during the tenure of new CEO Bill Ready. In addition, investors are likely feeling uneasy about the potential for a recession in the U.S., which would almost surely cause advertisers to cut back on their ad spending. As people began venturing outside their homes more often, user growth has been under pressure. together with Canada.) This dynamic is being driven by the pandemic, which caused a surge in the number of folks using the company's platform during the earlier, "stay-at-home" stages of the crisis. ![]() (Last quarter, the company began categorizing the U.S. However, investors remain concerned about Pinterest's user metrics, particularly its declining year-over-year user numbers in the U.S. Moreover, it started 2022 on a solid note, with its first-quarter earnings speeding by the Street's expectation, and its revenue slightly surpassing it. Investors will probably be approaching the visual-based social media company's report with cautious optimism. On the positive side, the company has a good track record of beating Wall Street's earnings expectations. ![]() A conference call with analysts is scheduled for the same day at 5 p.m. Pinterest ( PINS -1.08%) is slated to report its second-quarter 2022 results after the market close on Monday, Aug. ![]()
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