The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Pandora Media beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP loss per share grew. GAAP loss per share increased.
Margins shrank across the board.
Pandora Media logged revenue of $125.1 million. The 21 analysts polled by S&P Capital IQ expected to see revenue of $122.8 million on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $81.3 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 -$0.04. The 20 earnings estimates compiled by S&P Capital IQ predicted -$0.05 per share. Non-GAAP EPS were -$0.04 for Q4 versus -$0.03 per share for the prior-year quarter. GAAP EPS were -$0.09 for Q4 compared to -$0.05 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 31.3%, 130 basis points worse than the prior-year quarter. Operating margin was -11.5%, 160 basis points worse than the prior-year quarter. Net margin was -11.6%, 150 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $118.5 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $598.5 million. The average EPS estimate is -$0.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 203 members out of 604 rating the stock outperform, and 401 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Pandora Media a green thumbs-up, and 131 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 $11.96.
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