Reuters: Hot Stocks: UPDATE 3-Pandora Media lowers outlook as fiscal cliff looms

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 3-Pandora Media lowers outlook as fiscal cliff looms Dec 4th 2012, 23:15 Tue Dec 4, 2012 5:03pm EST * Q4 revenue expected between $120 mln to $123 mln * Q3 revenue up on strong mobile revenue * Q3 adj EPS of 5 cents vs Street view of 1 cent (Adds executive comment, more analyst comment, financial detail) By Jennifer Saba Dec 4 (Reuters) - Pandora Media Inc lowered its fourth quarter guidance because advertisers, spooked by the looming fiscal cliff, have pulled back on spending. The outlook on Tuesday sent Pandora shares tumbling 20 percent in after-hours trading. The online streaming music service said that it expects fourth quarter revenue of $120 million to $123 million. Analysts were expecting revenue of $130.3 million, according to Thomson Reuters I/B/E/S. Pandora CEO Joe Kennedy said that advertisers are being prudent, a change that occurred over the last couple months. "We are reflecting the caution we are seeing," Kennedy said in an interview with Reuters about the lowered forecast. "I think advertisers are nervous." Pandora's fiscal fourth quarter ends in January, which is why the fiscal cliff figures into its forecast, he said. Still, the company reported better-than-expected third quarter revenue, up 60 percent to $120 million on strong mobile revenue. It said mobile revenue, an important metric, rose 112 percent to $73.9 million for the third quarter. "This is a conservative guidance issue," said Rich Tullo, an analyst with Albert Fried & Company. "I think the (third quarter) numbers are strong. You can't argue with 112 percent growth on mobile." The company reported adjusted earnings per share of 5 cents in the third quarter ending October, beating analysts expectations of a penny. Shares of Pandora Media closed up 5.4 percent at $9.45 but shed 20 percent after the results were released. (Reporting By Jennifer Saba in New York; Editing by Bernard Orr) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions