OAKLAND, Calif. (AP) - Internet radio company Pandora Media Inc. said Tuesday that its third-quarter net profit more than tripled to $2 million as revenue rose slightly faster than costs. But it predicted a loss in the fourth quarter, a bad surprise for investors, who sent shares tumbling.
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, however, predicted a loss in the fourth quarter of between 6 cents and 9 cents per share. That's far worse than the penny per share profit analysts were looking for. The company's stock plunged $1.80, or 19 percent, to $7.65 in after-hours trading after the quarterly results were released.