Stifel Nicolaus analyst Jordan Rohan’s projections for Internet radio company Pandora (NYSE:P) got bumped around after the bell Tuesday.
After closing Tuesday around $14, Pandora was down around 14% in postmarket trading following the company’s less-than-stellar earnings report. Rohan had upgraded Pandora from hold to buy, with a price target of $18.
On its face, Pandora’s report sounds strong. Fourth-quarter revenues spiked by 71% to $81.3 million, and total listening hours came to 2.7 billion — up 99% from the year-ago period. The number of active users was up to 47 million, a 62% increase.
Unfortunately, Wall Street wasn’t happy with the results. The revenues still were short of expectations for $83 million, and an adjusted loss of 3 cents per share was worse than estimates of 2 cents.
Plus, it looks like Pandora’s problems will continue into the current quarter. Pandora is looking for revenue of $72 million to $75 million, short of the consensus view for $86.5 million. Pandora also expects a loss of 18 to 21 cents per share, which compares to an expected loss of 2 cents.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”, “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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