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Estimize CEO Sees Weak Sentiment On Q1 Pandora Fundamentals


Expectations for Pandora Media Inc (NYSE: P)'s first quarter results expected after the Bell Thursday have been on a steep downward trend, according to the head of Estimize, a crowd-sourced earnings forecast service.

"We're seeing falling estimates and not much positive sentiment for Pandora's fundamentals," said Estimize Chief Executive Leigh Drogen.

Drogen, who made the comment April 14 during a conference call sponsored by SunTrust Robinson Humphrey on Internet earnings expectations, said Pandora's shares have been buoyed by a recent funding round for Spotify, which valued the company at $8.4 billion.

Pandora shares gained about 8 percent in the past month and changed hands recently at $17.70, up $0.19.

Pandora has beaten the Wall Street consensus in each of the past three quarters, and the average Estimize forecast calls for a first quarter loss that is 12 percent narrower than the current Wall Street consensus.

Thirty-six estimates entered at the Estimize website predict on average that Pandora will post an adjusted loss of $0.14 a share, on revenue of $226.3 million.

Among 30 Wall Street analysts who follow Pandora, the forecast average calls for Pandora to post an adjusted loss of $0.16 a share, while revenue will grow nearly 25 percent to $224.6 million.

But among analysts, that average estimated loss has widened sharply from $0.05 a share three months ago.

Drogen noted a similar trend among anonymously posted estimates on the Estimize site.

Posted-In: Estimize Leigh DrogenPreviews Crowdsourcing Trading Ideas General


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