NEW YORK – Pandora ‘ s stock is climbing Friday after the online radio company, on the condition that a stronger fourth quarter sales outlook and announced plans to cut about 7 percent of the workforce.
Pandora said late Thursday that the job cuts, which would exclude Ticketfly, be done to help trim overall costs. The Oakland, California-based company is facing increasing competition from Spotify and Apple Inc.’s music service.
Pandora anticipates the defeat of the previously announced forecast for the fourth quarter revenue in a range of $362 million to $374 million, due to the strong performance of ads. Analysts polled by FactSet expect $369.6 million.
Pandora Media Inc. it is expected to report its fourth quarter and full-year financial results on Feb. 9.
The stock climbed 80 cents, or 6.7 percent, to $12.80 in the morning trade Friday. The shares are 27 percent more than last year.