Pandora Media Earnings: Here’s Why Investors are Not Excited Now

Pandora Media Inc (NYSE:P) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.48%.

Pandora Media Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.12 in the quarter versus EPS of $0.00 in the year-earlier quarter.

Revenue: Rose 51.18% to $153.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pandora Media Inc reported adjusted EPS income of $0.12 per share. By that measure, the company beat the mean analyst estimate of $0.02. It missed the average revenue estimate of $156.35 million.

Quoting Management: “Our second fiscal quarter was an important inflection point in Pandora’s history. Strong momentum in our mobile business, with non-GAAP total mobile revenue growing 92% year-over-year to $116 million, clearly demonstrates the leverage in Pandora’s business model,” said Joe Kennedy, Chairman and CEO of Pandora. “To drive future growth, we are accelerating investment in new technologies, channels and capabilities that maximize the value Pandora delivers.”

Key Stats (on next page)…

Revenue increased 21.98% from $125.51 million in the previous quarter. EPS increased to $0.12 in the quarter versus EPS of $-0.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.07 to a profit $0.08. For the current year, the average estimate has moved up from a profit of $0.03 to a profit of $0.05 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)