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What to Expect from Pandora (P) Stock this Earnings Season?
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Pandora Media, Inc. is scheduled to report first-quarter 2017 results on May 8. It delivered a positive earnings surprise of 25.00% in the last quarter. Also, it has a positive four-quarter average earnings surprise of 15.45%. Let’s see how things are shaping up for this announcement.
Factors to Consider
Pandora has taken strategic measures to post a turnaround. In the past few months, the company announced the launch of Pandora Plus and Pandora Premium services. While Plus is a “one-of-a-kind, ad-free radio experience” available for $4.99 per month, Premium creates a playlist for users based on their playlist history. It will be ad free and will enable users to save songs for offline listening. Premium carries a price tag of $9.99.
Also, as part of its strategy, Pandora acquired companies like Next Big Sound, Rdio and Ticketfly. In addition, it is cutting label deals to reduce dependence on CRB rates and better manage content costs. The company has struck several licensing deals with Sony Music, Warner Brothers, a unit of Time Warner and Universal Music Group.
Moreover, in a move to lower its operating costs, Pandora is undergoing a 7% cut in its workforce, which should aid the company’s to-be-reported quarter’s bottom-line results, in our opinion.
For the first quarter, the company expects revenues in the range of $310–$320 million. Further, it projects adjusted EBITDA loss in a range of $70–$80 million.
Our proven model does not conclusively show that Pandora will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Pandora has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Pandora currently has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrants a Look
Here are a couple of companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in its upcoming release:
Snap Inc. (SNAP - Free Report) with an Earnings ESP of +42.49% and a Zacks Rank #3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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What to Expect from Pandora (P) Stock this Earnings Season?
Pandora Media, Inc. is scheduled to report first-quarter 2017 results on May 8. It delivered a positive earnings surprise of 25.00% in the last quarter. Also, it has a positive four-quarter average earnings surprise of 15.45%. Let’s see how things are shaping up for this announcement.
Factors to Consider
Pandora has taken strategic measures to post a turnaround. In the past few months, the company announced the launch of Pandora Plus and Pandora Premium services. While Plus is a “one-of-a-kind, ad-free radio experience” available for $4.99 per month, Premium creates a playlist for users based on their playlist history. It will be ad free and will enable users to save songs for offline listening. Premium carries a price tag of $9.99.
Also, as part of its strategy, Pandora acquired companies like Next Big Sound, Rdio and Ticketfly. In addition, it is cutting label deals to reduce dependence on CRB rates and better manage content costs. The company has struck several licensing deals with Sony Music, Warner Brothers, a unit of Time Warner and Universal Music Group.
Moreover, in a move to lower its operating costs, Pandora is undergoing a 7% cut in its workforce, which should aid the company’s to-be-reported quarter’s bottom-line results, in our opinion.
For the first quarter, the company expects revenues in the range of $310–$320 million. Further, it projects adjusted EBITDA loss in a range of $70–$80 million.
Pandora Media, Inc. Price and EPS Surprise
Pandora Media, Inc. Price and EPS Surprise | Pandora Media, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Pandora will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Pandora has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Pandora currently has a Zacks Rank #3. Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrants a Look
Here are a couple of companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in its upcoming release:
EGain Corp. (EGAN - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Snap Inc. (SNAP - Free Report) with an Earnings ESP of +42.49% and a Zacks Rank #3.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>