The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Pandora Media beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Gross margins shrank, operating margins grew, net margins grew.
Pandora Media tallied revenue of $120.0 million. The 24 analysts polled by S&P Capital IQ predicted revenue of $116.9 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $75.0 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 $0.05. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS of $0.01 for Q3 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.3%, 310 basis points worse than the prior-year quarter. Operating margin was 1.8%, 80 basis points better than the prior-year quarter. Net margin was 1.7%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $130.3 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $429.2 million. The average EPS estimate is -$0.09.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 205 members out of 575 rating the stock outperform, and 370 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Pandora Media a green thumbs-up, and 124 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 $13.93.
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