Pandora Loses Intra-Day Gains Following Big Sales Miss

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Pandora Media IncP
shares were trading down more than 7 percent in Thursday's after-hours session. The company reported Q4 EPS of $0.06 vs. estimates of $0.07, while sales came in at $268 million vs. $332 million estimates. The company sees Q1 sales in a range of $280-$290 million vs. $284 million estimates; It sees FY 2016 sales of about $1.4 billion, inline with estimates. "Revenue up 25% year-over-year isn't shabby, but the company lost $169 million in that time and $19.4 million in Q4. After paying out royalties, there just isn't enough cash to cover its expenses,"
TechCrunch noted
. Total listener hours grew 3 percent to 5.37 billion in Q4, compared to 5.20 billion for the same period of the prior year. Total listener hours grew 5 percent to 21.11 billion for the full year, compared to 20.03 billion for the same period of the prior year. Active listeners were 81.1 million at the end of Q4, compared to 81.5 million for the same period of the prior year. The stock gained more than 8 percent Thursday, following a
New York Times report
that the company may consider selling itself. See Also:
Expert: Pandora Suitors Could Include Netflix, Facebook, Google, Amazon And Others
CEO Brian McAndrews said in a press release, "We enter 2016 with an enhanced portfolio of assets, cost certainty and substantial competitive advantages. We're invested in the long-term and I could not have more conviction about the ability of Pandora to lead the future of music. Given our confidence in our core advertising model, the massive long-term opportunity and the competitive advantages we have built, we believe 2016 is the time to build on this foundation and invest in our many opportunities to fuel revenue acceleration in 2017 and bolster long-term growth prospects." After closing at $9.11, the stock traded recently at $8.40, down 7.8 percent in the after-hours session.
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Posted In: EarningsNewsAfter-Hours CenterMoversTech
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