This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

The Reasons Sirius XM's (SIRI) Dropped 8% This Week

Stocks in this article: SIRI

NEW YORK (TheStreet) -- Shares of Sirius XM  (SIRI) have dropped 8.3% this week, a decline caused by missed third-quarter results, announced price increases and a Goldman Sachs downgrade. On Friday alone, shares were tumbling 5.4% to $3.70 in mid-day trading.

The New York-based company reported earnings of a penny a share, flat with a year earlier, and net income of $62.89 million, 15.6% lower than a year earlier. Revenue increased 11% year on year to $961.5 million, though analysts surveyed by Thomson Reuters expected $970.37 million.

For the full-year 2013, Sirius management revised its guidance, upping projected revenue to $3.77 billion from $3.7 billion. However, the forecast still comes in lower than the $3.8 billion Yahoo! Finance-surveyed analysts predicted.

The satellite radio broadcaster also said announced would be increasing the monthly price of its core service by 50 cents to $14.99 in 2014. This is the second time prices have been lifted since 2008.

"While changing prices is a difficult decision, particularly on a competitive audio entertainment market, we are confident that our subscribers see significant value on our service and that this modest change will not significantly impact retention next year," said Jim Meyer during a conference call.

On Friday, Goldman Sachs downgraded Sirius to "neutral" from "buy" on lower-than-expected average revenue per user. The investment firm reaffirmed its $4.25 price target.

TheStreet Ratings team rates Sirius XM Radio Inc as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate Sirius XM Radio Inc (SIRI) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs