Pandora outlook for loss sparks sell-off
Internet radio company Pandora Media predicts it will stream a loss in the current quarter. The shares plunged as a result in after-hours trading.
It also reported that third-quarter net profit more than tripled to $2 million as revenue rose slightly faster than costs. Net income in the three months to Oct. 31 amounted to a penny per share. Excluding the cost of compensating executives with stock, adjusted earnings came to 5 cents per share, beating the penny per share expected by analysts polled by FactSet.
Revenue rose 60 percent to $120 million, higher than the $117 million expected by analysts.
Pandora looks for a fourth quarter loss of up to 9 cents a share. That's far worse than the penny per share profit analysts were looking for.
The company's stock plunged 18 percent after the results were reported.
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