Pandora Media Earnings: Here’s Why the Stock is Rising Now
Pandora Media Inc (NYSE:P) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.74%.
Pandora Media Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.10 in the quarter versus EPS of $-0.09 in the year-earlier quarter.
Revenue: Rose 59.07% to $128.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Pandora Media Inc reported adjusted EPS loss of $0.10 per share. By that measure, the company met the mean analyst estimate of $-0.10. It beat the average revenue estimate of $123.83 million.
Quoting Management: “Pandora continues to expand its mobile leadership,” stated Joe Kennedy, Chairman & CEO of Pandora. “Mobile listening hours and mobile ad revenue reached record highs, with growth in mobile ad revenue exceeding growth in mobile listening hours. During the quarter, we successfully implemented a mobile listening limit, enabling us to manage our content acquisition costs with minimal impact on listenership or revenue growth. Pandora’s subscriber base surpassed 2.5 million, adding more net new subscribers in the quarter than in all of fiscal 2013, giving Pandora the largest US streaming subscriber base of any music service.”
Key Stats (on next page)…
Revenue increased 2.73% from $125.09 million in the previous quarter. EPS decreased to $-0.10 in the quarter versus EPS of $-0.04 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.01 and has not changed. For the current year, the average estimate has moved up from a loss of $0.01 to a profit of $0.01 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)