The 10-second takeaway
For the quarter ended July 31 (Q2), Pandora Media met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share dropped.
Margins contracted across the board.
Pandora Media tallied revenue of $101.3 million. The 21 analysts polled by S&P Capital IQ wanted to see revenue of $100.5 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $67.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.00. The 20 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.03 for Q2 versus -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.8%, 870 basis points worse than the prior-year quarter. Operating margin was -5.2%, 740 basis points worse than the prior-year quarter. Net margin was -5.3%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $114.7 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $424.1 million. The average EPS estimate is -$0.10.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 188 members out of 571 rating the stock outperform, and 383 members rating it underperform. Among 175 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Pandora Media a green thumbs-up, and 142 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pandora Media is outperform, with an average price target of $14.05.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.