NEW YORK (TheStreet) -- Shares of Pandora Media, Inc. (P) are down 11.70% to $25.36 on very heavy trading volume as the largest Internet radio service slid the most in three months after listener growth missed some analysts' estimates, Bloomberg reports.
Pandora released its quarterly results yesterday where profit beat projections and the company raised its 2014 outlook.
Second quarter earnings came to 4 cents a share, excluding items. Analysts predicted 3 cents. Sales were up 43% to $218.9 million, beating the $218.7 million average estimate.
Active listeners increased 7.5% to 76.4 million users in the second quarter, but that was below the 76.6 million estimate of Corey Barrett, an analyst at Pacific Crest Securities, and a projection of 77 million by Mark Mahaney at RBC Capital Markets, Bloomberg said.
The company expects to earn 5 cents to 8 cents per share on an adjusted basis in the third quarter, with sales of $235 million to $240 million. Analysts had seen 8 cents and $234 million.
For the full year, Pandora forecasts 16 cents to 19 cents a share in profit, excluding items, up from the 14 cents to 18 cents it saw in April.
TheStreet Ratings team rates PANDORA MEDIA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: