Pandora stock prices and earning report estimated 25 august 2011 ; Pandora(P) is scheduled to report earnings today. This will be the first earnings report from the Internet radio company after going public earlier this year.
Investors will eagerly look for information on Pandora's growth outlook and cost trends as it faces increasing competition from SiriusXM(SIRI) in the automobile market and Spotify, which recently launched its music service in the U.S. via Facebook.
Below we take a quick look at some of the key factors to watch.
Our price estimate for Pandora is near $10, which is around 20% below the market price.
Pandora's User Base Growth
This is the single biggest driver to Pandora's stock. The company currently only operates in the U.S. and registered around 80 million users in 2010. In July, the company crossed 100 million users and the looming challenge is whether or not Pandora can maintain this strong growth as its penetration levels in the U.S. rise. Content licensing deals are expensive though they help bring in new users while expanding internationally is no piece of cake. Both factors will weigh on the company's growth rate.
We currently forecast strong user growth and will wait for earnings to get a better view on Pandora's expansion plans to adjust our forecast.
Showing posts with label Pandora. Show all posts
Showing posts with label Pandora. Show all posts
Thursday, August 25, 2011
Tuesday, August 2, 2011
Pandora shares prices loses its shine on the Copenhagen Stock Exchange august 2 2011
Pandora shares prices loses its shine on the Copenhagen Stock Exchange august 2 2011 ; Shares in Pandora lost about two-thirds of their value as the Danish jewellery manufacturer slashed its full-year earnings outlook and parted company with its chief executive.
The 65 per cent plunge in Pandora shares on the Copenhagen Stock Exchange came less than a year after it raised about DKr10bn (€1.3bn) from an initial public offering that was one of the biggest in Europe last year.
Pandora, best known for the charm bracelets that it sells in 55 countries, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19.
It also cut the full-year forecast for its earnings before interest, tax, depreciation and amortisation margin from at least 40 per cent to the “low thirties”.
The company blamed a “sharp revenue deterioration” late in the second quarter for a slowdown in its year-on-year revenue growth to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter.
Its ebitda fell by 6.2 per cent to DKr512m in the second quarter.
Pandora cited a myriad of contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
“This performance and these results are totally unacceptable. There are no excuses for them, they are largely self-inflicted, they reflect poor execution,” said Allan Leighton, Pandora’s board chairman.
The situation “can be remedied – but over time,” added Mr Leighton, the former chairman of the Royal Mail in the UK.
Pandora, founded in 1982 by husband-and-wife team Per and Winnie Enevoldsen, has attempted in recent months to move its mid-market brand into a more exclusive category by increasing prices and vastly expanding its product range. But this strategy backfired as large segments of its traditional customer base shied away from Pandora’s pricier offerings.
“This business requires a reset back to its mass market, affordable luxury positioning and good old fashioned execution of the basics around price, range promotion, inventory upgrades and new accounts,” said Mr Leighton, who is also chairman of UK fashion chain Peacock and set-top box maker Pace.
Pandora said prices on key products have already been cut and no fresh retail price rises are likely either this year or next. It also plans a more aggressive marketing effort in emerging markets and said it would open 190 new concept stores in the second half of 2011.
Pandora’s travails are being seen in Copenhagen as a major blow to Axcel, the Danish private equity group that floated the jeweller in a highly successful IPO in October 2010. The float, priced at DKr210 a share, gave Pandora a market capitalisation of about DKr27bn.
The shares, which had briefly climbed above DKr370 earlier this year, fell to DKr51 on Tuesday afternoon, wiping DKr12.6bn off the company’s market value in one day.
Goldman Sachs, JPMorgan, Morgan Stanley and Nordea Bank were joint global co-ordinators and bookrunners for Pandora’s IPO.
Axle, which bought a 60 per cent stake in the company in 2008 from its founding family, still owns 32 per cent of the shares.
Mikkel Vendelin Olesen, Pandora’s chief executive, left the company on Tuesday “with immediate effect.” His position will be filled temporarily by Marcello Bottoli, a board member, until a new chief is appointed.
The 65 per cent plunge in Pandora shares on the Copenhagen Stock Exchange came less than a year after it raised about DKr10bn (€1.3bn) from an initial public offering that was one of the biggest in Europe last year.
Pandora, best known for the charm bracelets that it sells in 55 countries, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19.
It also cut the full-year forecast for its earnings before interest, tax, depreciation and amortisation margin from at least 40 per cent to the “low thirties”.
The company blamed a “sharp revenue deterioration” late in the second quarter for a slowdown in its year-on-year revenue growth to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter.
Its ebitda fell by 6.2 per cent to DKr512m in the second quarter.
Pandora cited a myriad of contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
“This performance and these results are totally unacceptable. There are no excuses for them, they are largely self-inflicted, they reflect poor execution,” said Allan Leighton, Pandora’s board chairman.
The situation “can be remedied – but over time,” added Mr Leighton, the former chairman of the Royal Mail in the UK.
Pandora, founded in 1982 by husband-and-wife team Per and Winnie Enevoldsen, has attempted in recent months to move its mid-market brand into a more exclusive category by increasing prices and vastly expanding its product range. But this strategy backfired as large segments of its traditional customer base shied away from Pandora’s pricier offerings.
“This business requires a reset back to its mass market, affordable luxury positioning and good old fashioned execution of the basics around price, range promotion, inventory upgrades and new accounts,” said Mr Leighton, who is also chairman of UK fashion chain Peacock and set-top box maker Pace.
Pandora said prices on key products have already been cut and no fresh retail price rises are likely either this year or next. It also plans a more aggressive marketing effort in emerging markets and said it would open 190 new concept stores in the second half of 2011.
Pandora’s travails are being seen in Copenhagen as a major blow to Axcel, the Danish private equity group that floated the jeweller in a highly successful IPO in October 2010. The float, priced at DKr210 a share, gave Pandora a market capitalisation of about DKr27bn.
The shares, which had briefly climbed above DKr370 earlier this year, fell to DKr51 on Tuesday afternoon, wiping DKr12.6bn off the company’s market value in one day.
Goldman Sachs, JPMorgan, Morgan Stanley and Nordea Bank were joint global co-ordinators and bookrunners for Pandora’s IPO.
Axle, which bought a 60 per cent stake in the company in 2008 from its founding family, still owns 32 per cent of the shares.
Mikkel Vendelin Olesen, Pandora’s chief executive, left the company on Tuesday “with immediate effect.” His position will be filled temporarily by Marcello Bottoli, a board member, until a new chief is appointed.
Monday, July 25, 2011
Pandora shares prices Analysts prediction With Positive Outlooks
Pandora shares prices Analysts prediction With Positive Outlooks : Pandora Media may still be trading under its first-day June debut of $20 per share. But a pair of analysts has weighed in with a couple of positive outlooks for the digital radio company.
JP Morgan’s Doug Anmuth weighed in with his take, rating Pandora as “overweight.” That’s not exactly a straight buy suggestion. But Anmuth, Reuters reports, sent a note to investors pointing to the possibilities of Pandora bringing in significant money from mobile advertising as more people sign onto the online radio service using mobile applications.
Wells Fargo Securities' Jason Maynard rated the company an "outperform". Since Pandora represents only 3.6 percent of all radio listener hours, the company has huge room for growth, Maynard wrote, according to the Reuters report.
Other analysts have been less bullish on Pandora, pointing out that as the company adds new listeners, it has to pay more in royalties for music. They expressed doubts that the company’s advertising model could make enough to keep up with royalty costs.
GreenCrest Capital, which covers private companies, set a target stock price of $7 per share when Pandora went public. The gap between that target and the first-day stock price had some speculating that Pandora would be another in the recent string of public success stories.
But the stock has underperformed since then. For example, today at midday, Pandora shares traded at $17.81, down .22 cents on the day.
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JP Morgan’s Doug Anmuth weighed in with his take, rating Pandora as “overweight.” That’s not exactly a straight buy suggestion. But Anmuth, Reuters reports, sent a note to investors pointing to the possibilities of Pandora bringing in significant money from mobile advertising as more people sign onto the online radio service using mobile applications.
Wells Fargo Securities' Jason Maynard rated the company an "outperform". Since Pandora represents only 3.6 percent of all radio listener hours, the company has huge room for growth, Maynard wrote, according to the Reuters report.
Other analysts have been less bullish on Pandora, pointing out that as the company adds new listeners, it has to pay more in royalties for music. They expressed doubts that the company’s advertising model could make enough to keep up with royalty costs.
GreenCrest Capital, which covers private companies, set a target stock price of $7 per share when Pandora went public. The gap between that target and the first-day stock price had some speculating that Pandora would be another in the recent string of public success stories.
But the stock has underperformed since then. For example, today at midday, Pandora shares traded at $17.81, down .22 cents on the day.
tag ; Pandora shares today, pandora stock prices today, Pandora shares prices prediction, Pandora stock prices forecast, Pandora shares prediction,pandora stock below ipo price, pandora stock prices trading,
Friday, July 15, 2011
Pandora new version of its popular internet radio service
Pandora new version of its popular internet radio service : Pandora is rolling out a new version of its popular internet radio service this week that doesn’t rely on social networks such as Twitter or Facebook: It is a social network — or at least it will be, when the new, faster-loading, HTML5-powered version of the site goes live.
Pandora announced the service on Tuesday, which is rolling out now to premium Pandora One subscribers ($3 per month). Later, users of the free, ad-supported version will see the changes too.
This is serious business, now that Pandora is a public company; if these tweaks cause traffic to dip, Wall Street will make the startup, which counts approximately one sixth of the U.S. population as active users, pay.
TechCrunch is enamored with the changes, and waxes poetic, having received a preview from Pandora CTO Tom Conrad. If you prefer the quick version, here’s a summary of the changes the company announced.
Profiles and Music Feeds: Pandora has allowed users to maintain profiles (here’s mine) for years. The new version emphasizes them much more, allowing each user to create a Facebook-like profile page where friends can leave comments. But the activity feeds are the most important new social feature. When you “friend” someone on Pandora, you will see what they’re listening to, talking about, or rating, in a constantly-updated activity feed. Rather than relying on outside social networks, Pandora will have its own.
Playback bar: With all of this friending, commenting, reading, and navigating, Pandora needed a good way to keep letting you listen to music, which, after all, is still the point of the service. To cope with that, the new Pandora gives you a playback control bar that follows you around the site so you can skip, pause, and rate songs.
Faster load time: If you’ve created lots of stations on the current Flash version of Pandora you know the thing takes forever to load. This new version ditches Flash in favor of HTML5, and judging from the above report about Conrad’s demo, the new Pandora loads much, much faster. It’s about time.
Automatic recommendations: When a user searches for stuff on the new Pandora, it will autofill recommendations tailored to that user: genres, comedians, and auto-completed artist names based on the stuff it knows you like.
Better metadata: To learn more about a song, you’ll be able to click the artist name for a bio, expand the album art, and read the lyrics as you listen.
Back button: The new version’s use of HTML5 instead of Flash means that as you do all of this stuff, you’ll be able to use your web browser like a web browser, instead of a Flash app with its own discrete controls. In more simple terms, this means you’ll be able to use the Back button, finally, to navigate to the previous page without leaving the site and silencing the service.
Sharing: Because the new Pandora is an HTML5 web app, stations have their own URLs. You can share those however you want — or, use the service’s own sharing feature to send stuff to Twitter, Facebook, or Pandora’s own social network.
Pandora announced the service on Tuesday, which is rolling out now to premium Pandora One subscribers ($3 per month). Later, users of the free, ad-supported version will see the changes too.
This is serious business, now that Pandora is a public company; if these tweaks cause traffic to dip, Wall Street will make the startup, which counts approximately one sixth of the U.S. population as active users, pay.
TechCrunch is enamored with the changes, and waxes poetic, having received a preview from Pandora CTO Tom Conrad. If you prefer the quick version, here’s a summary of the changes the company announced.
Profiles and Music Feeds: Pandora has allowed users to maintain profiles (here’s mine) for years. The new version emphasizes them much more, allowing each user to create a Facebook-like profile page where friends can leave comments. But the activity feeds are the most important new social feature. When you “friend” someone on Pandora, you will see what they’re listening to, talking about, or rating, in a constantly-updated activity feed. Rather than relying on outside social networks, Pandora will have its own.
Playback bar: With all of this friending, commenting, reading, and navigating, Pandora needed a good way to keep letting you listen to music, which, after all, is still the point of the service. To cope with that, the new Pandora gives you a playback control bar that follows you around the site so you can skip, pause, and rate songs.
Faster load time: If you’ve created lots of stations on the current Flash version of Pandora you know the thing takes forever to load. This new version ditches Flash in favor of HTML5, and judging from the above report about Conrad’s demo, the new Pandora loads much, much faster. It’s about time.
Automatic recommendations: When a user searches for stuff on the new Pandora, it will autofill recommendations tailored to that user: genres, comedians, and auto-completed artist names based on the stuff it knows you like.
Better metadata: To learn more about a song, you’ll be able to click the artist name for a bio, expand the album art, and read the lyrics as you listen.
Back button: The new version’s use of HTML5 instead of Flash means that as you do all of this stuff, you’ll be able to use your web browser like a web browser, instead of a Flash app with its own discrete controls. In more simple terms, this means you’ll be able to use the Back button, finally, to navigate to the previous page without leaving the site and silencing the service.
Sharing: Because the new Pandora is an HTML5 web app, stations have their own URLs. You can share those however you want — or, use the service’s own sharing feature to send stuff to Twitter, Facebook, or Pandora’s own social network.
Tuesday, July 12, 2011
Pandora shares were down, Pandora fails to reassure on music royalties
Pandora shares were down, Pandora fails to reassure on music royalties : Shares of Pandora Media Inc (P.N) dropped nearly 4 percent on Tuesday after the online radio company said it will not renegotiate fees paid to music companies until 2014, offering little comfort to investors worried about hefty royalty charges.
The Internet music-streaming service operator said on its first analysts' conference call that improved margins would come through more advertising rather than declining music royalties.
It would start negotiating in 2014 for new music royalty rates that would take effect in 2016, executives said. Royalties are based on a complicated rates-formula that essentially rises each year until 2016, after which a new, unknown set of rates will kick in.
"We believe it will be an economically rational rate," said Joe Kennedy, Pandora's chief executive officer. Royalties currently eat up more than half of company revenue.
Pandora hopes to offset those expenses with revenue growth from new markets. He said the company saw growth coming from mobile devices, where it is seeing success on benchmarks such as the number of consumers downloading its mobile applications.
But growth from the car market will not ramp up significantly for another few years as it will take time for automakers to get Pandora onto their dashboards, and for consumers to replace existing cars, executives said.
On Tuesday, Pandora announced an expanded relationship with Ford Motor Co (F.N), bringing the service into 10 vehicles, and a new relationship with Toyota Motor Corp's (7203.T) Scion unit. It said it had 100 million registered users and 36 million active monthly users.
Pandora shares were down 3.6 percent at $18.56 on Tuesday afternoon, off an earlier low at $18.50.
Pandora lost $1.76 million on revenue of $137.8 million in the year ended January 31. Royalty payments totaled $69.4 million.
Its initial public offering in June attracted considerable attention after its stock quickly rose well above the $16 offer price before reversing course and crashing below it the following day.
The Internet music-streaming service operator said on its first analysts' conference call that improved margins would come through more advertising rather than declining music royalties.
It would start negotiating in 2014 for new music royalty rates that would take effect in 2016, executives said. Royalties are based on a complicated rates-formula that essentially rises each year until 2016, after which a new, unknown set of rates will kick in.
"We believe it will be an economically rational rate," said Joe Kennedy, Pandora's chief executive officer. Royalties currently eat up more than half of company revenue.
Pandora hopes to offset those expenses with revenue growth from new markets. He said the company saw growth coming from mobile devices, where it is seeing success on benchmarks such as the number of consumers downloading its mobile applications.
But growth from the car market will not ramp up significantly for another few years as it will take time for automakers to get Pandora onto their dashboards, and for consumers to replace existing cars, executives said.
On Tuesday, Pandora announced an expanded relationship with Ford Motor Co (F.N), bringing the service into 10 vehicles, and a new relationship with Toyota Motor Corp's (7203.T) Scion unit. It said it had 100 million registered users and 36 million active monthly users.
Pandora shares were down 3.6 percent at $18.56 on Tuesday afternoon, off an earlier low at $18.50.
Pandora lost $1.76 million on revenue of $137.8 million in the year ended January 31. Royalty payments totaled $69.4 million.
Its initial public offering in June attracted considerable attention after its stock quickly rose well above the $16 offer price before reversing course and crashing below it the following day.
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