Markets

SIRIUS XM Q3 Earnings in Line, Revenues Beat; View Raised

Credit: Shutterstock photo

SIRIUS XM Holdings Inc.SIRI reported third-quarter 2015 financial numbers wherein the bottom line was on par with the Zacks Consensus Estimate while the top line surpassed the same.

Quarterly GAAP net income came in at $166.6 million or 3 cents per share compared with $136.2 million or 2 cents in the prior-year quarter. Earnings were in line with the Zacks Consensus Estimate. Meanwhile, total revenue of $1,169.7 million exhibited annualized growth of 10.7% and was also above the Zacks Consensus Estimate of $1,150 million.

Sirius XM Radio Inc. - Earnings Surprise | FindTheBest

Quarterly total operating expenses stood at $818.1 million, up 7.2% year over year. Operating income, in the reported quarter, was around $351.6 million, highlighting a decline of 19.6% from the year-earlier quarter. SIRIUS XM posted record third-quarter adjusted EBITDA of growth of $447 million, up 17% year over year.

At the end of the first nine months of 2015, SIRIUS XM had $901 million of cash from operations compared with $888.2 million at 2014-end. Quarterly free cash flow in the same period stood at $810.1 million compared with $801 million in the year-ago quarter.

At the end of the quarter under review, SIRIUS XM had nearly $152.5 million of cash and cash equivalents and $5,400 million of outstanding debt compared with $147.7 million and $4,493.9 million, respectively, at the end of 2014. The debt-to-capitalization ratio stood at 0.99 compared with 0.77 at the end of 2014.

Segment Wise Results

Quarterly Subscriber revenues totaled $974.5 million, up 8% year over year. Advertising revenues stood at $33.1 million, up 30.8% year over year. Equipment revenues were $25.9 million, up 12.1% year over year. Other revenues grossed $136.2 million, up 28.4% year over year.

Subscriber Statistics

In the third quarter of 2015, SIRIUS XM added 525,000 subscribers which reached the company's total subscriber tally to 28,960,000 as of Sep 30, 2015, up 8.3% year over year. Payment category wise, Self-Pay subscriber count totaled 23,816,000 (up 8.2% year over year) while the Paid Promotional customer count stood at 5,143,000 (up 9% year over year).

Important Operating Metrics

Despite intensifying competition from Alphabet Inc. GOOG , Apple AAPL and Pandora Inc. P , SIRIUS XM's average revenue per user stood at $12.67 in the quarter compared with $12.47 in the year-ago quarter. Average self-pay monthly churn rate was 1.9%, flat year over year. New Vehicle Customer Conversion rate was 41%, flat year over year. Subscriber acquisition cost stood at $34 compared with $35 in the year-ago quarter.

Financial Outlook

Management expects full-year 2015 revenues of around $4.53 billion while adjusted EBITDA is projected at roughly $1.65 billion. Meanwhile, free cash flow is expected at around $1.3 billion. Also, the company estimates an addition of 2 million new subscribers in 2015.

SIRIUS XM currently carries a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

APPLE INC (AAPL): Free Stock Analysis Report

SIRIUS XM HLDGS (SIRI): Free Stock Analysis Report

PANDORA MEDIA (P): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SIRIGOOGAAPL

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More