Pandora Stock Drops, TiVo Shares Rise After Strong Results
Wall Street expressed concern about the Internet radio company's outlook, while the DVR pioneer was cheered for returning to subscriber growth.
NEW YORK - Internet radio firm Pandora and TiVo Inc. both reported better-than-expected quarterly results late Tuesday, but their stocks went in different directions on Wednesday.
While the company had posted a surprise profit for the third quarter, Pandora shares dropped as Wall Street seemed concerned about its financial outlook.
Stifel, Nicolaus analyst Jordan Rohan summarized the results this way: "Solid report, but likely not enough to driver near-term upside." He said that guidance of $80 millionth- $84 million in fourth-quarter revenue "was below previous implied guidance…despite the strong third-quarter beat."
As of 9:50am ET, the stock was down 10.6 percent at $10.60, close to its low of $9.33, which it had established in September.
Meanwhile, TiVo's latest quarterly results had exceeded Wall Street expectations and seen the DVR firm return to overall subscriber growth for the first time in four years.
The stock was up 5.9 percent at $10.13 as of 9:50am ET. It has traded between $7.06 and $12.65 over the past year.
Janney Montgomery Scott analyst Tony Wible on Wednesday raised his fair value on the stock by 50 cents to $18.50. Lauding a "good quarter," he also argued that "core momentum and legal prospects improve risk/reward" for investors.
TiVo has been in patent litigation with AT&T and others that observers say could lead to trial results or settlements that should benefit TiVo. Litigation with AT&T is scheduled for January as is a settlement conference with Verizon.