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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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 position in any of the stocks mentioned. 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.