Pandora Media Inc (NYSE:P) is due to release its earnings report for the three months through June this afternoon after the market closes. Analysts are expecting the company to post a small profit in the quarter. More importantly, big revenue gains are seen as likely in this afternoon’s release.
Pandora Media Inc (NYSE:P) is currently attempting to monetize its music streaming service in order to transform its business from a growing technology idea with market backing into a real money making venture. Analysts following the company are expecting earnings per share of 2 cents from today’s report by consensus.
Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring investors exit long-short hedge funds, the oil market is now "broken", and Haidar Capital surges 225%. Q2 2022 hedge fund letters, conferences and more
Pandora revenue boom
The big story at Pandora Media Inc (NYSE:P), as with any internet start up, is the company’s revenue growth in the period. Consensus revenue estimates were at $156 million in anticipation of the report’s release. That number represents a 54% increase over last year’s revenue numbers.
The increase in revenue at the streaming service is linked to growth in its subscriber base, and, most important of all, the growth in revenue from the company’s mobile ads. Mobile monetization is a problem that many online firms are having trouble with. Pandora Media Inc (NYSE:P) seems up to the challenge, at least in the view of analysts.
Market reaction from Pandora Media Inc (NYSE:P) first quarter earnings report released back in May centered around the growth in the company’s mobile ad revenue. If Pandora can replicate that growth in this afternoon’s report it is likely to see a good deal of backing from the market, and from analysts.
With shares in the company trading at around $21 on today’s market, there’s a lot of optimism surrounding Pandora. In the last six months shares have increase in value by more than 75%. Since the start of the year they’re up more than 130%. Pandora Media Inc (NYSE:P) is clearly winning a lot of fans, they’re hoping the firm returns their support by putting up good numbers this afternoon.
On today’s market shares in Pandora Media Inc (NYSE:P) slumped, falling more than 1% to $21.26 at time of writing. Despite the optimism of the market, a misstep in earnings today could result in a large downside. It’s clear that many investors are not willing to take that risk. Pandora Media will host a conference call to discuss its earnings at 5 pm Eastern Time.