The 10-second takeaway
For the quarter ended April 30 (Q1), Pandora Media beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share increased. GAAP loss per share grew.
Margins grew across the board.
Pandora Media logged revenue of $125.5 million. The 24 analysts polled by S&P Capital IQ predicted a top line of $123.8 million on the same basis. GAAP reported sales were 55% higher than the prior-year quarter's $80.8 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 -$0.10. The 23 earnings estimates compiled by S&P Capital IQ anticipated -$0.10 per share. Non-GAAP EPS were -$0.10 for Q1 versus -$0.09 per share for the prior-year quarter. GAAP EPS were -$0.16 for Q1 against -$0.12 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 26.2%, 390 basis points better than the prior-year quarter. Operating margin was -22.7%, 220 basis points better than the prior-year quarter. Net margin was -22.8%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $149.7 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $617.8 million. The average EPS estimate is $0.02.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 209 members out of 633 rating the stock outperform, and 424 members rating it underperform. Among 185 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Pandora Media a green thumbs-up, and 136 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 $15.14.
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