Tags: Pandora | Shares | Slump | Forecast

Pandora Shares Slump as Forecast Falls Short

Wednesday, 05 February 2014 06:05 PM

Pandora Media Inc., the biggest U.S. online radio service, reported a fourth-quarter profit that beat analysts’ estimates, as advertising sales gained. But the company’s forecast for this quarter missed some projections, and the shares sank in late trading Wednesday.

Net income was $8.98 million, or 4 cents a share, compared with $1.63 million, or 1 cent, a year earlier, the Oakland, California-based company said in a statement. Excluding items, profit was 11 cents a share. That compares with an estimated 7 cents in profit, the average of 24 analysts’ estimates compiled by Bloomberg.

The company may post revenue in the current quarter of $170 to $176 million. That compares with the average estimate of $172.8 million. It forecast an adjusted loss of 14 cents to 16 cents a share, compared with an average analyst projection for a loss of 12 cents.

Pandora is closing the gap between its share of radio listening and its percentage of the industry’s advertising revenue. The online service drew more than 8 percent of U.S. listeners in December, while the company has said it draws less than 1.5 percent of radio’s $15 billion in local ad sales.

Fourth-quarter revenue climbed 52 percent to $200.4 million, surpassing the $196.2 million average of analysts’ estimates.

Shortly after 6 p.m. in New York, Pandora shares were down 9.4 percent at $32.45. The stock was little changed at $35.83 at the close. Pandora's share price almost tripled last year.

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Pandora Media Inc., the biggest U.S. online radio service, reported a fourth-quarter profit that beat analysts' estimates, as advertising sales gained. But the company's forecast for this quarter missed some projections, and the shares sank in late trading.
Pandora,Shares,Slump,Forecast
240
2014-05-05
Wednesday, 05 February 2014 06:05 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved