Pandora shares bounce after Q4 earnings miss and sale report

February 15 22:50 2016

Pandora shares fell more than 6% after the Net radio provider posted a net loss the fourth quarter and fiscal 2015. Pandora (P) shares fell 6.5% to $8.50 in after-hours trading Thursday. Earlier in the day trading in stock was halted briefly for volatility after a New York Times report that the company might be for sale.

Shares rose 15% to $9.40 before the trading halt, which happened just after 2 p.m. ET. Pandora shares then fell after trading resumed, but remained up 8.2% to close Thursday at $9.09. Shares have fallen 40% over the past 12 months. Even though revenue rose 25% to $336.2 million for the fourth quarter, Pandora reported $19.4 million loss, compared to a profit of $12.3 million in the same period in 2014. The 2015 fiscal year net loss of $169.9 million, compared to $30.1 million in the previous year.

Pandora also saw a dip in active listeners to 81.1 million from 81.5 million in the previous year. “We enter 2016 with an enhanced portfolio of assets, cost certainty and substantial competitive advantages,” said Pandora CEO Brian McAndrews in a letter to shareholders. “We’re invested in the long-term and I could not have more conviction about the ability of Pandora to lead the future of music.”

Morgan Stanley is working with Pandora on a possible sale, The New York Times reported Thursday citing persons close to the situation. Wedbush Securities analyst Michael Pachter told CNBC he didn’t think that Pandora was actively seeking a buyer since it had purchased Ticketfly and the assets of competitor Rdio in October and November, respectively. “It’s more likely the bankers approached them and the bankers probably have a buyer lined up,” he said. Pandora reports fourth quarter earnings after the market closes Thursday.