Pandora Beats Earnings Estimates But Shares Fall on Outlook
Shares of Pandora Media were slipping in after-hours trading Thursday after the company reported better-than-expected quarterly earnings but offered disappointing guidance.
The digital music service said it earned 4 cents per share on an adjusted basis while analysts expected only half that. Revenue rose 55 percent to $157.4 million, which also bested expectations.
Revenue generated from advertising rose 44 percent year-over-year to $128.5 million. Revenue from subscriptions and other sources was $28.9 million, up from $11.9 million a year ago.
Pandora, though, said it might only break even during the full year, while analysts were modeling a profit of about a nickel per share.
Total listening hours grew 18 percent to 3.9 billion in the second fiscal quarter and CEO Joe Kennedy boasted of "strong momentum in our mobile business."
Shares of Pandora rose 1 percent on Thursday to $21.71, then dipped as much as 13 percent after the closing bell, though they recovered and were down only 3 percent as investors and analysts delved further into the company's largely positive financial report.