Pandora Falls After Disappointing Forecast

Pandora Media Inc. reported better-than-expected financial performance in the fourth quarter Thursday, but shares slipped on a disappointing forecast. The internet-radio company revealed a net loss of $19.4 million, or 38 cents a share, on revenue of $392.6 million. After adjustments for stock-based compensation and other effects, the company claimed a loss of 13 cents a share. Analysts on average expected Pandora to report an adjusted loss of 21 cents a share on sales of $374 million, according to FactSet. Last month, Pandora revealed that it would lay off employees despite raking in higher revenue that it originally expected for the quarter. Pandora's forecast for the first quarter was well below analyst estimates, however. Pandora predicted revenue of $10 million to $320 million, while analysts on average were expecting revenue of $342 million, according to FactSet. Pandora predicted full-year 2017 revenue of $1.55 billion to $1.7 billion, while analysts expected $1.66 billion. Pandora shares dove more than 5% in after-hours trading after the results were released, but losses calmed down and settled closer to 2% later in the afternoon.

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