Sirius XM Radio Earnings: Double-Digit Revenue Growth Tops Estimate

Sirius XM Radio Inc. (NASDAQ:SIRI) reported its results for the third quarter. SIRIUS XM Radio broadcasts its music, sports, news, talk, entertainment, traffic and weather channels in the United States for a subscription fee through its proprietary satellite radio systems: the SIRIUS system and the XM system.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Sirius XM Radio Inc. Earnings Cheat Sheet

Results: Net income for Sirius XM Radio Inc. fell to $74.5 million (one cent per share) vs. $104.2 million (2 cents per share) a year earlier. This is a decline of 28.5% from the year-earlier quarter.

Revenue: Rose 13.7% to $867.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sirius XM Radio Inc. fell short of the mean analyst estimate of 2 cents per share. It beat the average revenue estimate of $803 million.

Quoting Management: “SiriusXM delivered a very strong third quarter for our shareholders, with 446,000 net subscriber additions, double-digit growth, and record levels of revenue, adjusted EBITDA, and free cash flow. The Company has produced more free cash flow in the first nine months of this year than in any full year in its history, and we’ve used this cash to reduce our debt to its lowest level since the merger of Sirius and XM,” noted Mel Karmazin, Chief Executive Officer, SiriusXM. “We’re excited about the increase in subscriber guidance to 1.8 million net additions that we reported earlier this month, as we believe growth in the fourth quarter will continue. We continue to make investments across our business, particularly in R&D, customer care, infrastructure, and programming. We are also investing in new businesses, such as the telematics service we announced in the third quarter with Nissan, and we believe these investments will reward our shareholders in the years to come.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 3.1% to $767.5 million in the second quarter. The figure rose 11.2% in the first quarter from the year earlier and climbed 6.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 2 cents.

Looking Forward: Expectations for the fourth quarter have not changed from 2 cents. Over the past three months, the average estimate for the fiscal year has climbed from 8 cents per to share to 43 cents.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Ford’s Stock a Buy After a Record Quarter?

Will Sirius’s Stock Still Be a Buy After the Buyout?

Is Facebook Harmful to Your Health and Wallet?