Sirius XM Radio Inc. Earnings: A Turnaround to a Profit

Sirius XM Radio Inc. (NASDAQ:SIRI) reported its results for the fourth 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.

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Sirius XM Radio Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $71.3 million (one cent per diluted share) in the quarter. Sirius XM Radio Inc. had a net loss of $81.4 million or a loss 2 cents per share in the year earlier quarter.

Revenue: Rose 6.5% to $783.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Sirius XM Radio Inc. fell in line with the mean analyst estimate of one cent per share. Analysts were expecting revenue of $785.5 million.

Quoting Management: “We are proud to announce that SiriusXM delivered another record-setting year in 2011, meeting or exceeding all of our guidance. Our strong content and subscriber focus helped set a post-merger record of 1.7 million net subscriber additions, and we achieved record levels of revenue, adjusted EBITDA and free cash flow. We expanded our adjusted EBITDA margins to 24% by tightly controlling costs and growing our revenue. Our improved profitability, coupled with lower capital expenditures, contributed to a substantial increase in our free cash flow,” noted Mel Karmazin, Chief Executive Officer, SiriusXM.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 6.3% to $762.5 million in the third quarter. The figure rose 6.4% in the second quarter from the year earlier and climbed 9% in the first quarter from the year-ago quarter.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the third quarter, it topped the mark by one cent, and in the second quarter, it was ahead by 2 cents.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 2 cents per share from one cent. The average estimate hasn’t changed from 6 cents per share for the fiscal year.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com