Pandora revenue rises 30.5% on higher advertising sales

Cisco rose 1.74 percent, or 48 cents, to $28.01, as it sold off its TV set-top business to France’s Technicolor for $600 million. Shares surged more than 16 percent after-hours, to more than $560, which would not only be an all-time high for Amazon stock, but place it above Walmart in market value. In a research note released to the investors, OTR Global downgrades its rating on Pandora Media, Inc. Adjusted EBITDA excludes $27.5 million in expense from stock-based compensation, $5 million of depreciation and amortization expense, $300k of other income and $100k of provision for income taxes. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twenty-one have issued a buy rating to the stock. The higher estimate for the short term price target is at $31 while the lower estimate is at $11. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

As of this writing, shares of Pandora Media were up 4.54% at $14.50 per share in after-hours trades. Analysts had been expecting earnings of 63 cents per share on $33.04 billion in revenue. Pandora Media has an average rating of “Hold” and an average target price of $20.82. (NYSE:P) posted earnings per share of $-0.23 for the period ended 2015-03-31. The Internet radio service reported ($0.12) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.04. Analysts, before today’s report, had expected the company to earn $0.10 per share, using adjusted techniques, on revenue of $309.2 million.

The streaming music service’s revenue clocked in at $285.6 million, just over the $283 million expected, though it lost $16.1 million overall. The company’s quarterly revenue was up 18.8% on a year-over-year basis. Mobile revenue grew 37 percent to $229.7 million, or 80.4 percent of revenue.

Pandora Media, Inc. (NYSE:P), is an Internet radio in the United States. It boasts a 60 million monthly user base with 15 million paid subscribers. The Music Genome Project and its playlist generating algorithms predict listener music preferences, play music content suited to the tastes of each individual listener and introduce listeners to music they will love.

Pandora listener growth has slowed and the company didn’t turn a profit in the second quarter, but the online radio company was able to improve where it mattered most: revenue and local advertising. It also offers a subscription service to listeners. The Companys service enables its listeners to create up to 100 personalized stations. These improvements show Pandora’s business model allows for margin improvement as revenue grows.