Pandora Media Inc Third Quarter Earnings Sneak Peek

Pandora Media Inc (NYSE:P) will unveil its latest earnings on Tuesday, December 4, 2012. Pandora Media operates as an Internet radio company in the United States. It provides its radio service to traditional computers, Android phones, Blackberry phones, and the iPhone.

Pandora Media Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 2 cents per share after the company broke even in the year-earlier quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 4 cents, reporting a loss of 3 cents per share against a mean estimate of net loss of 7 cents. In the first quarter, the company exceeded forecasts by 6 cents with a loss of 12 cents versus a mean estimate of net loss of 18 cents.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $5.4 million (3 cents a share) from a loss of $1.8 million (4 cents) a year earlier, but beat analyst expectations. Revenue rose 51.2% to $101.3 million from $67 million.

Wall St. Revenue Expectations: On average, analysts predict $117.1 million in revenue this quarter, a rise of 56.1% from the year-ago quarter. Analysts are forecasting total revenue of $429.1 million for the year, a rise of 56.4% from last year’s revenue of $274.3 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.91 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.01 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.5% to $87 million while assets rose 7.7% to $166.2 million.

Analyst Ratings: There are 12 out of 19 analysts surveyed (63.2%) rating Pandora Media a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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