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Pandora CEO to Step Down, Shares Surge

He will remain with the company until a replacement is found


PandoraShares of Pandora (NYSE:P) soared more than 24% in Friday morning trading after the company posted better-than-expected quarterly results and said it is looking for a new CEO.

The Internet radio service announced that Chairman and CEO Joseph Kennedy will depart the company as soon as a new CEO is located. Kennedy has led Pandora since 2004, the Associated Press noted.

Watch Out, Pandora! Slacker Radio is Relaunching
Watch Out, Pandora! Slacker Radio is Relaunching

For its fiscal fourth quarter, Pandora lost $14.6 million. During the same period last year, it lost $8.2 million. Adjusted EPS showed a loss of 4 cents a share, narrowly beating the loss of 5 cents a share that Wall Street expected.

The company posted quarterly revenue of $125.1 million, a 54% jump compared to last year, and topping the $122.8 million that analysts had forecast. Mobile device revenue hit $80.3 million, up 111% over the prior year.

Company officials are estimating an adjusted loss of between 10 cents to 13 cents a share during the current quarter on revenue ranging from $120 million to $125 million. Wall Street is expecting a 10 cent per share loss and slightly lower revenue.

Last month, Pandora announced that non-subscribers who use the service on mobile devices will be restricted to 40 hours of listening per month.

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