Pandora, PayPal, Visa, and Other Stocks in Spotlight on Friday

After falling sharply yesterday, crude futures are in the red again today as traders prepare for the latest Baker Hughes rig count release.

In this earnings-heavy article that covers stocks that are in the spotlight today, we take a closer look at the earnings reports of Pandora Media Inc (NYSE:P), Paypal Holdings Inc (NASDAQ:PYPL), Proofpoint Inc (NASDAQ:PFPT), Schlumberger Limited. (NYSE:SLB), and Visa Inc (NYSE:V). In addition, we are going to take a closer look at the

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Pandora Results Mixed

Pandora Media Inc (NYSE:P) shares are up by over 3% after the company reported mixed second-quarter results. Although the streaming music company beat earnings estimates with a loss of $0.12 per share versus estimates of a loss of $0.16 per share, Pandora’s revenue missed the consensus by $8.58 million with a figure of $343.02 million, but it surged by 20.1% year-over-year. Guidance was also soft, with the company projecting full-year revenue of $1.380 billion to $1.405 billion, versus estimates of $1.424 billion. Despite the soft top-line, demand for the service is still growing as total listener hours rose by 7% year-over-year to 5.66 billion. Among the funds we track, 35 funds owned $772.23 million worth of Pandora Media Inc (NYSE:P)’s stock, which accounted for 37.90% of the float on March 31, versus 48 funds and $1.03 billion, respectively, a quarter earlier.

PayPal Retreats on Results

In marked contrast to eBay’s results yesterday, Paypal Holdings Inc (NASDAQ:PYPL) shares are 7% in the red after the financial tech company reported earnings of $0.36 per share on revenue of $2.65 billion, largely in-line with the average analyst estimates of $0.36 in EPS and sales of $2.6 billion. Revenue advanced by 15.2% year-over-year as active accounts inched up 11% to 188 million and processed transactions soared 25% For the full year, the company anticipates adjusted EPS of $1.47 to $1.50. Shares could be down today because the market was expecting more growth for the full year. With ownership of 37.83 million shares,  Carl Icahn’s Icahn Capital LP was a major shareholder of Paypal Holdings Inc (NASDAQ:PYPL) at the end of March.

On the next page, we examine Proofpoint, Schlumberger Limited, and Visa.

Proofpoint Soars on Earnings Beat

Proofpoint Inc (NASDAQ:PFPT) has gained over 10% in morning trading after the company’s second-quarter results soundly beat analysts’ estimates. During the time period, Proofpoint earned $0.06 per share on sales of $89.9 million, beating the consensus by $0.13 per share and $5.68 million, respectively. Revenue jumped by 41.5% year-over-year, powered by billings growth of 34% year-over-year and robust renewal and add-on activity. Full year 2016 revenue is expected to come in at $361.5 million to $363.5 million and adjusted EPS is expected between $0.06 and $0.10. The number of funds tracked by us with holdings in Proofpoint Inc (NASDAQ:PFPT) fell by eight quarter-over-quarter to 22 at the end of March.

Schlumberger Rallies

Despite crude futures falling by another percent today, oil service giant Schlumberger Limited. (NYSE:SLB) shares are in the green largely on the back of a solid second quarter. For the three months ended June 30, Schlumberger earned $0.23 per share on sales of $7.2 billion, beating the average analyst estimates by $0.02 per share and $70 million, respectively. Cash flow from operations came in at $1.6 billion, while free cash flow was $0.9 billion. Management thinks that the company has reached “the bottom of the cycle” and is actively shifting its “focus to recover the temporary pricing concessions that have been made, and to renegotiate contracts with limited promise of longer-term financial viability”. A total of 56 funds owned shares of Schlumberger Limited. (NYSE:SLB) at the end of March, up by five funds from the previous quarter.

Visa Profit Ahead of Expectations

Visa Inc (NYSE:V) earned $0.69 per share on sales of $3.63 billion for its fiscal third quarter, beating the average net income estimate by $0.03 per share, but missing the top-line consensus by $20 million. Overall, revenue rose by 3.1% year-over-year as total number of processed transactions jumped by 10% 19.8 billion. Management sees adjusted sales growth of 7-8% for the fourth quarter and the company’s board authorized a new $5-billion share repurchase program. At the end of the first quarter, 106 investors tracked by Insider Monkey had a bullish position in Visa Inc (NYSE:V).

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