Pinterest Stock Rises 12% On Strong Outlook

Shares of Pinterest (PINS) are up 12% after the social media company issued strong forward guidance that exceeded analysts’ expectations.The San Francisco-based company that allows users to share images via digital pin boards reported first-quarter earnings per share (EPS) of $0.23 U.S., which was below the $0.25 U.S. expected on Wall Street. Revenue in the year’s first quarter totaled $855 million U.S., which was ahead of the $847 million U.S. consensus forecast of analysts.While the Q1 numbers were mixed, Pinterest issued a strong outlook that has sent its share price up more than 10%. Management said second-quarter sales should be between $960 million U.S. and $980 million U.S., which, at the midpoint, is higher than analyst expectations that called for $966 million U.S.Also giving the 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 also reported $1.52 U.S. in first quarter global average revenue per user, which was in line with analysts’ estimates.“The fundamentals in the business are strong and we’re continuing to see healthy growth,” said management in their earnings release. Prior to today (May 9), Pinterest’s stock had declined 9% this year and was trading at $27.86 U.S. per share.