This Day On The Street
Continue to site
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

Sirius XM (SIRI) Scores With Record Revenue, Subscribers

NEW YORK (TheStreet) -- No wonder Liberty Media Corp (LMCA) is keen on Sirius XM (SIRI - Get Report). The satellite radio broadcaster was on a roll last year, achieving record revenue that rose 12% for the year to $3.8 billion and 12% for the fourth quarter to $1 billion. Total sales exceeded analysts' full-year and fourth-quarter expectations of $3.78 billion and $981.9 million, respectively, according to Thomson Reuters estimates.

Continued subscriber growth added to the company's robust top line. For the full year, around 1.66 million additions contributed to a total 25.6 million subscribers at year-end, a 7% increase from 2012.

In the fourth quarter, the company recorded an all-time high of self-pay subscribers (those who continue to subscribe after the reduced-rate promotional period). By the end of the quarter, self-pay subscribers totaled 21.1 million, an 8% increase from ayear earlier. Subscriber acquisition costs declined to $124 million, or a record low of 12% adjusted revenue. The improvement was due to lower subsidy rates per Sirius-enabled vehicle.

Coming in less favorably, net income of 1 cent a share missed consensus by a penny. Full-year earnings of 6 cents a share was just shy of the 7 cents a share analysts had expected.

Must Read: JPMorgan Downgrades Newmont Mining (NEM)

"We remain excited about continuing our track record of delivering profitable growth in 2014, with the goal of enhancing free cash flow while making investments in key long-term initiatives," said CEO Jim Meyer in a statement.

Management reiterated existing 2014 guidance of revenue of more than $4 billion and net subscriber additions totaling 1.25 million.

TheStreet Ratings team rates SIRIUS XM HOLDINGS INC as a Buy with a ratings score of B. The team has this to say about its recommendation:

"We rate SIRIUS XM HOLDINGS INC (SIRI) a BUY. This is driven by several positive factors, 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, expanding profit margins, increase in stock price during the past year 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

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SIRI $4.12 0.00%
AAPL $118.03 0.00%
FB $105.41 0.00%
GOOG $748.15 0.00%
TSLA $229.64 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs