Pandora Earnings: Analyst And Crowd Estimates Have Been Falling

Pandora Media Inc P will report its first quarter financial results on Thursday, after market close.

According to Estimize, both the crowd and Wall Street analysts expect negative earnings. The crowd projects EPS of ($0.14) on revenue of $226.33 million, and the Street, EPS of ($0.16) on revenue of $225.37 million.

For its part, the company guided revenue of $222.50 million.

Related Link: Needham Admits Mistake On Pandora; Reiterates Buy

The graph below illustrates the history of estimates versus actual earnings for Pandora:

The current estimates imply pretty much flat earnings year-over-year. In the first quarter of 2014, the company had reported negative EPS of ($0.13). However, in the most recently reported quarter (fourth quarter of 2014), Pandora reported EPS of $0.18.

Related Link: Morgan Stanley On Pandora: 'We Know What We Don't Know'

It's also possible to see estimates over time.

In Pandora’s case, both the Street’s and the crowd’s projections have been consistently falling since January. After converging in February, the Street became more bearish, while the crowd was slightly more constructive, yet quite negative.

Analysts Are Still Bullish

Despite the poor estimates, some Wall Street firms still seem quite optimistic about Pandora.

Last week, analysts at Wedbush reiterated an Outperform rating with the expectation that the company will report robust 1Q results.

BMO Capital Markets also maintained an Outperform, expecting the company to have benefited –- over the first quarter -- from "stronger listening hours as well as the plethora of new devices activated recently."

Needham also reiterated a Buy, in anticipation of the earnings call.