Wall Street is projecting a loss compared to a profit last year, while revenue will increase year-over-year.
Analysts surveyed by FactSet are forecasting a loss of 6 cents per share on revenue of $366.0 million.
During the same quarter last year, the Oakland, CA-based music streaming service earned 10 cents per diluted share on revenue of $311.6 million.
Canaccord Genuity has a "buy" rating and $18 price target on the stock ahead of the quarterly report.
"We expect generally in-line results for Pandora in Q3. Regarding listeners and hours, our analysis of Triton Digital estimated Pandora listener hours for the month of July suggests fairly solid trends early in Q3, following an upbeat Q2," the firm wrote in an analyst note.
Canaccord believes investor focus will turn to the analyst event accompanying third-quarter results and possible updates to 2020 operating targets.
"Either way, we continue to expect mostly in-line results for the remainder of 2016, and a 2017 that is likely to show robust adoption of Pandora's on-demand product," the firm added.
Shares of Pandora were slumping in mid-afternoon trading on Friday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: P