Shares of Pinterest (NYSE:PINS) gained 9.29% in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.28, which beat analysts’ consensus estimate of $0.21 per share.
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Sales increased by 11% year-over-year, with revenue hitting $763.2 million. This beat analysts’ expectations by $20 million.
The San Francisco-based company’s global monthly active users increased by 8% year-on-year in the third quarter to 482 million. Additionally, the average revenue per user came in at $1.61, better than analysts’ predictions of $1.59.
Looking forward, management now expects revenue growth of 11 to 13% in Q4 2023.
For reference, analysts were expecting $743 million in revenue along with an adjusted EPS of $0.21.
Is PINS a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PINS stock based on 13 Buys, 10 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PINS price target of $33.05 per share implies a 32.02% upside potential.