Pandora Media Inc (NYSE:P) shares hit a new 52-week low of $5.42 on Friday after the company reported lower-than-expected revenue for the third quarter and also offered weak sales forecast for the ongoing quarter.
The Oakland, California-based company has projected revenue in a range of $365 million and $380 million for the current-quarter, while analysts surveyed by Thomson Reuters I/B/E/S were looking for $412.9 million in revenue.
For the quarter ended Sept. 30, Pandora posted a net loss of $84.6 million, or 34 cents a share, wider than $61.5 million, or 27 cents a share in the same period last year. Excluding items, loss for the quarter came in at 6 cents per share. Analysts on average were looking for a loss of 8 cents per share.
Pandora posted revenue of $378.6 million in the third quarter, representing a surge of 7.6 percent from the year-earlier quarter, but but below consensus forecast of $380.6 million.
The company’s advertising revenue advanced just 1 percent to $275.7 million in the quarter amid closure of operations in Australia and New Zealand. Analysts surveyed by FactSet were looking for advertisement revenue of $289.3 million.
Pandora’s overall listener hours decreased to 5.15 billion in the latest quarter, as compared to 5.40 billion in the same period last year.
Following disappointing quarterly results, analysts at Stifel Nicolaus cut its rating on Pandora (P) stock from “Buy” to “Hold”. Pandora shares fell more than 22 percent this morning. The share price of Pandora stayed mostly bearish this year, as the stock has plummeted more than 54 percent year-to-date. The 52-week range of the stock is $5.42-$14.10. The company’s market cap is $1.40 billion.