Here’s What You Need to Know Before Pandora Media Inc (NYSE:P) Reports
Pandora Media, Inc. (P) Information Technology – Internet, Software & Services | Reports July 21, After Market Closes
Key Takeaway
- The Estimize consensus is calling for a 13 cent loss per share on $352.74 million in revenue, 1 cent higher than Wall Street on the bottom line and right in line on the top
- Pandora has overhauled its operations to provide users with an all inclusive listening experience on its new platform
- The online music industry is reaching saturation with a handful of companies competing at the top
- What are you expecting for P? Get your estimate in here!
Pandora is scheduled to release its second quarter results this Thursday, after the market closes. The online streaming service has been on the wrong side of earnings for over a year. Both revenue and earnings growth has decelerated quarter after quarter as a number of new services emerge in the music industry. Spotify currently hold the top spot in the space with Pandora, Apple, and Amazon not far behind. Despite stiff competition, Pandora expects to turn the corner with its upcoming report.
The Estimize consensus is calling for a 13 cent loss per share on $352.74 million in revenue, 1 cent higher than Wall Street on the bottom line and right in line on the top. Compared to this time last year, earnings are expected to contract by 375% with sales up by as much as 23%. On average the stock doesn’t do too well through earnings season. In the 1 to 5 days following a report shares of Pandora typically drop by as much as 4%. After a strong first quarter and shares up more than 40% over the past three months, Pandora appears to be turning the corner. Last quarter saw many key metrics increase from advertising revenue to active listeners and listening hours. Pandora has used its fast growing revenue streams to make key acquisitions in the music space such as TicketFly and Rdio. In Q1, TicketFly achieved 30% revenue growth providing Pandora with a nice boost on the top line.
Pandora has also overhauled is operations to provide an all-inclusive listening experience on its own platform. It recently announced a new on demand platform that will feature radio, on demand and live music that is expected to add $750 million to its top line. Its ongoing success has allowed them to invest in new technologies. Pandora has made strides by integrating its app within the rapidly growing ride- sharing economy. The Uber app now includes core radio services for active drivers around the world.
There is no denying that Pandora is one of the premier music providers, but given Spotify recently eclipsed 100 million active users and Apple and Amazon have only recently busted onto the scene, it might not be smooth sailing for Pandora. The music service perpetually takes a loss as they continue to pour resources into staying relevant and expanding revenue. 
Do you think P can beat estimates? There is still time to get your estimate in here!
