Pandora Continues Slide Ahead of Earnings Thursday

Pandora Media (NYSE: P) is due to report first quarter earnings on Thursday after market close.

Morgan Stanley analyst John Egbert believes Pandora's ad business “is better-equipped to face the industry's CQ1 seasonal slowdown than it was last year, which could lead to slight upside in advertising revenue.”

Egbert is forecasting “CQ1:14E non-GAAP revenue of $175MM (in-line with consensus), adjusted EBITDA of -$26MM (vs. consensus -$23MM), and non-GAAP loss per share of -$0.15 (vs. consensus -$0.14).”

The analyst expects advertising revenue to grow by 40 percent year-over-year to $135 million.

Shares of Pandora are down 3.4 percent to $28.31 in Wednesday's trading. The stock is 30 percent off its high of $40.44.