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Pandora (P) Q2 Loss Narrower than Expected, Revenues Beat
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Pandora Media, Inc. posted narrower-than-expected adjusted loss per share (including stock-based compensation but excluding one-time items) of 31 cents for second-quarter 2017. The Zacks Consensus Estimate was pegged at a loss of 39 cents per share.
Revenues increased 9.9% year over year to $376.8 million, surpassing the Zacks Consensus Estimate of $364.7 million.
Quarter Details
Revenue growth in second-quarter 2017 was driven by higher advertising revenues (73.8% of total revenues), which increased 4.9% from the year-ago quarter to $278.2 million. Subscription and other revenues (18.3%) increased 25% year over year to $68.9 million. Revenues from ticketing services (7.9%) grew 31% to $29.7 million.
Total listener hours fell 7.8% on a year-over-year basis to 5.22 billion in the quarter while the number of active listeners was 76 million.
Average revenue per paid subscriber (ARPU) was $4.82 in the quarter and licensing costs per paid subscriber (LPU) was $3.11.
Pandora’s adjusted EBITDA loss was $54.3 million, compared with a loss of $25.1 million in the year-ago quarter.
Pandora Media, Inc. Price, Consensus and EPS Surprise
Pandora exited the quarter with $227.6 million in cash and investments, up from $203 million at the end of the prior quarter. Net cash used in operating activities was $103,494 in the quarter compared with $45,474 in the prior quarter.
Guidance
Pandora provided guidance for the third quarter as well as for full-year 2017.
For third-quarter 2017, revenues are expected in the range of $370–$385 million, reflecting a 14% year-over-year growth rate at midpoint. The company expects adjusted EBITDA loss in the range of $5–$20 million.
The Zacks Consensus Estimate for the top and the bottom line is pegged at $399.9 million and loss of 22 cents per share, respectively.
In the trailing four quarters, Applied Optoelectronics, Kemet and Vishay delivered average positive earnings surprises of 118.33%, 72.92% and 1.86%, respectively.
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Pandora (P) Q2 Loss Narrower than Expected, Revenues Beat
Pandora Media, Inc. posted narrower-than-expected adjusted loss per share (including stock-based compensation but excluding one-time items) of 31 cents for second-quarter 2017. The Zacks Consensus Estimate was pegged at a loss of 39 cents per share.
Revenues increased 9.9% year over year to $376.8 million, surpassing the Zacks Consensus Estimate of $364.7 million.
Quarter Details
Revenue growth in second-quarter 2017 was driven by higher advertising revenues (73.8% of total revenues), which increased 4.9% from the year-ago quarter to $278.2 million. Subscription and other revenues (18.3%) increased 25% year over year to $68.9 million. Revenues from ticketing services (7.9%) grew 31% to $29.7 million.
Total listener hours fell 7.8% on a year-over-year basis to 5.22 billion in the quarter while the number of active listeners was 76 million.
Average revenue per paid subscriber (ARPU) was $4.82 in the quarter and licensing costs per paid subscriber (LPU) was $3.11.
Pandora’s adjusted EBITDA loss was $54.3 million, compared with a loss of $25.1 million in the year-ago quarter.
Pandora Media, Inc. Price, Consensus and EPS Surprise
Pandora Media, Inc. Price, Consensus and EPS Surprise | Pandora Media, Inc. Quote
Balance Sheet & Cash Flow
Pandora exited the quarter with $227.6 million in cash and investments, up from $203 million at the end of the prior quarter. Net cash used in operating activities was $103,494 in the quarter compared with $45,474 in the prior quarter.
Guidance
Pandora provided guidance for the third quarter as well as for full-year 2017.
For third-quarter 2017, revenues are expected in the range of $370–$385 million, reflecting a 14% year-over-year growth rate at midpoint. The company expects adjusted EBITDA loss in the range of $5–$20 million.
The Zacks Consensus Estimate for the top and the bottom line is pegged at $399.9 million and loss of 22 cents per share, respectively.
For 2017, revenues are forecast in the range of $1.45–$1.5 billion.
The Zacks Consensus Estimate for the top and the bottom line is pegged at $1.54 billion and loss of $1.07 per share, respectively.
Zacks Rank and Share Price Movement
We note that Pandora’s shares have decreased 31.9% in the past year, against the industry’s gain of 16%.
Presently, Pandora carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the broader tech space are Applied Optoelectronics, Inc. (AAOI - Free Report) , Kemet Corp. (KEM - Free Report) and Vishay Intertechnology, Inc. (VSH - Free Report) . All these three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank Stocks here.
In the trailing four quarters, Applied Optoelectronics, Kemet and Vishay delivered average positive earnings surprises of 118.33%, 72.92% and 1.86%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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