Sirius XM Radio Earnings: EXCEEDS Forecasts with These Profits, Investors Cheer

Sirius XM Radio Inc. (NASDAQ:SIRI) reported net income above Wall Street’s expectations for the second quarter. The stock is rallying over 2 percent on the news. 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.

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Sirius XM Radio Inc. Earnings Cheat Sheet

Results: Net income for Sirius XM Radio Inc. rose to $3.13 billion (48 cents per share) vs. $173.3 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 12.5% to $837.5 million from the year-earlier quarter.

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

Quoting Management: “SiriusXM continued its exceptional performance in the second quarter, adding over 600,000 subscribers, which represents a post-merger record, despite the mixed macroeconomic trends. We also attained a record-level free cash flow of $230 million – the highest single quarterly free cash flow figure in SiriusXM’s history. We are very pleased with the strong operating results we have delivered since the merger, especially our performance in 2012, as we have grown revenue, tightly controlled expenses, and produced substantial growth in adjusted EBITDA and free cash flow,” remarked Mel Karmazin, Chief Executive Officer, SiriusXM.

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 11.2% to $804.7 million in the first quarter. The figure rose 6.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 6.3% in the third quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 2 cents versus a mean estimate of net income of one cent per share.

Looking Forward: The average estimate for the third quarter is steady at 2 cents a share. The average estimate hasn’t changed from 7 cents per share for the fiscal year.

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

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