Apr 08, 2020 (Market Realist via COMTEX) -- Pinterest /zigman2/quotes/211319641/composite PINS -1.59% stock rose 14% in extended trading on Tuesday after the company reported its preliminary first-quarter results. On Tuesday, Pinterest stock fell 1.0% and closed at $15.06. Based on the last closing price, the company has a market cap of $8.6 billion. The stock price has fallen 2.5% in the trailing five-day period, while it has fallen 21.8% in the trailing three-month period.
Currently, Pinterest stock is trading 59.1% below its 52-week high of $36.83 on August 22, 2019. The stock is also trading 49.1% above its 52-week low of $10.10 on March 18, 2020. On a year-to-date basis, the stock has fallen by 19.2% as of Tuesday.
Pinterest's first-quarter preliminary results
In the first quarter, Pinterest expects to report revenues of $269 million to $272 million. The company also expects global MAUs (monthly active users) to be in the range of 365 million to 367 million. In the first quarter, its US MAUs are expected to be between 89 million to 90 million, and its international MAUs between 276 million-277 million. Pinterest also highlighted that the company has a strong balance sheet position. As of March 31, the company's cash, cash equivalents, and marketable securities were $1.7 billion with no financial debt. The company also has an undrawn revolving credit facility of $500 million. Pinterest will report its first-quarter earnings results after the market closes on May 5.
Pinterest withdrew its fiscal 2020 financial guidance amid COVID-19 uncertainty. In a press release , Pinterest CFO Todd Morgenfeld said, "The near-term financial impact of this pandemic is rapidly evolving and difficult to measure and quantify. First-quarter revenue performance was consistent with our expectations through the middle of March, when we began to see a sharp deceleration. Fortunately, despite weakness across nearly the entire advertising market, our exposure to some of the most affected segments like travel, automotive, and restaurants has not been significant." He also said, "Based on our current visibility, we expect to evaluate planned expenses while continuing to pursue and prioritize objectives that fuel the long-term growth of the company."
Analysts' recommendations for Pinterest stock
Among the 24 analysts covering Pinterest stock, 11 recommend a "buy"--down from 12 the previous month. Meanwhile, 12 analysts recommend a "hold"--unchanged from the previous month. One analyst recommends a "sell"--up from none the previous month. Analysts have an average target price of $24.62 on Pinterest. The target price implies a return of 63.5% based on the closing price of $15.06 on Tuesday. The consensus target price for the stock has fallen from $29.81 in March--a fall of 17.4%.
After Pinterest's preliminary first-quarter results were announced, Baird analyst Colin Sebastian maintained his "outperform" rating on the stock with a target price of $23. However, Wedbush reduced its target price on the stock from $30 to $22, while Credit Suisse lowered it from $29 to $23.
Analysts' earnings expectations
Pinterest reported sales of $1.14 billion in 2019--a rise of 51.2% YoY (year-over-year). The company reported an adjusted EPS of $0.00 in 2019 compared to -$0.37 in 2018. Wall Street analysts expected the company to post sales of $1.11 billion and earnings of -$0.09 in 2019.
Wall Street analysts expect Pinterest to report sales of $268.0 million in the first quarter. The figure would mark an increase of 32.7% YoY compared to $201.9 million in the first quarter of 2019. Also, analysts expect the company to report an adjusted EPS of -$0.09 in the first quarter compared to -$0.32 in the first quarter of 2019. Currently, analysts expect a 21.7% and 35.3% rise in the company's 2020 and 2021 revenues, respectively. Analysts also expect an adjusted EPS of -$0.01 and $0.20 in 2020 and 2021, respectively.
Pinterest's stock performance
On Tuesday, Pinterest stock was trading 8.8% above its 20-day moving average of $13.84. Meanwhile, the stock is trading 18.6% below its 50-day moving average of $18.49 and 20.7% below its 100-day moving average of $18.98. Pinterest's 14-day RSI (relative strength index) score is 48. The RSI indicates that the stock isn't "overbought" or "oversold."
Pinterest has an upper Bollinger Band level of $16.51. The company's middle Bollinger Band level is $13.84, while its lower Bollinger Band level is $11.17. On Tuesday, the stock closed near its middle Bollinger Band level, which indicates that it's neutral. Pinterest's 14-day MACD is 0.51, which suggests that the stock is on an upward trading trend.