This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Pandora (P) is Sinking in Pre-Market Trading

NEW YORK (TheStreet) -- Online radio broadcaster Pandora (P - Get Report) issued guidance which saw shares sink in pre-market trading, days after competitor Sirius XM (SIRI) beat expectations in its own earnings release.

In pre-market trading, shares had tumbled 9.9% to $32.27. Shares of Sirius were unchanged.

The company said per-share earnings in 2014 are expected between 13 cents and 17 cents, short of expectations for 19 cents a share, according to analysts polled by Thomson Reuters. For the first quarter ended March, a wider-than-expected loss of between 16 cents and 14 cents a share is forecast, compared to consensus of a 12-cents-a-share loss.

Less-than-expected profitability is a result of rising costs as the company strives to snap up a greater share of the market.

Must Read: Green Mountain (GMCR) Receives Stifel Vote

"We remain intensely focused on advancing Pandora's mission to reinvent radio. To fully capture the substantial market opportunity ahead of us, we will continue to aggressively invest in 2014 in sustained audience and engagement growth," wrote CEO Brian McAndrews in a statement.

Though it is one of the most popular online radio services, it has formidable competition from Sirius, Apple's (AAPL) iTunes Radio and Spotify.

In January, Oakland-based Pandora active listeners dropped nearly 4% from December, a result of seasonal fluctuations, but were up 12% from a year earlier. Share of total U.S. radio listening was 8.57%, up from 7.68% in January last year.

Weak guidance overshadowed Pandora's most profitable quarter since its IPO in 2011. The company reported fourth-quarter net income of 11 cents a share on $200.8 million in revenue. Analysts anticipated earnings of 7 cents a share on sales of $201.1 million.

Full-year net income of 6 cents a share exceeded consensus by 4 cents, while revenue of $647.5 million (56% higher than a year earlier) came in as expected.

Must read: Wall Street Must Demand Answers From Pandora ... Now

Must read: Sirius XM (SIRI) Scores With Record Revenue, Subscribers

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
P $9.93 5.19%
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs