Pandora Falls - Again! - After Beating Q4 Estimates

Can Pandora P do anything right? The online music service reported a Q4 EPS of $0.11 versus the Street estimate of $0.08. Earnings per share were up 375 percent from the year-ago period. "Pandora continued growing revenue over 50% year-over-year," Brian McAndrews, CEO, President & Chairman of Pandora, said in a company release. "We continued to improve monetization, which was reflected in record RPMs on all dimensions of our business, and drove our first non-GAAP profitable year as a public company. "Throughout the year, we were able to invest back into the business with notable achievements, improving our product, innovating across multiple technologies, devices and automotive platforms in our continuing efforts to reinvent radio and make Pandora available anytime, anywhere for millions of listeners." Unfortunately, the company also said that it expects to report a Q1 EPS between $(0.14) and $(0.16) versus the Street estimate of $(0.12). Sales are expected to fall within the $170 million to $176 million range, which isn't that far from the Street estimate of $171 million. Pandora anticipates a FY2014 EPS between $0.13 and $0.17 versus the Street estimate of $0.19. FY2014 sales are expected to be between $870 million and $890 million versus the Street estimate of $896.3 million. These expectations have led to another decline in Pandora's share price. The stock is currently down more than seven percent in after hours trading. When Pandora reported its second quarter results, the stock plummeted more than four percent. Pandora fell by another four percent when the firm announced its third quarter results. Year-to-date, Pandora was up more than 33 percent at market close on Tuesday, February 4, 2014. Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.