SiriusXM (SIRI) Stock Soars on Q2 Revenue Beat, Positive Guidance

SiriusXM (SIRI) reported better-than-expected 2016 second quarter revenue this morning and an upbeat outlook for the year.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of SiriusXM  (SIRI) - Get Report  are climbing 3.13% to $4.28 in pre-market trading after the company reported 2016 second quarter revenue that topped analysts' estimates.

The company reported revenue of $1.24 billion, which surpassed Wall Street's estimated $1.22 billion for the quarter and was a "quarterly record," according to a company statement.

Earnings for the period were 3 cents per diluted share, just missing estimates of 4 cents per share.

The New York-based broadcasting company also provided upbeat 2016 fiscal year guidance. SiriusXM expects "record" revenue for the year approaching $5 billion, up from prior guidance of $4.9 billion.

It also expects to add 1.7 million tonal new subscribers for the year, vs. previous guidance of 1.6 million.

"We grew net new subscribers by 587,000 in the second quarter, and our subscriber base, revenue, adjusted EBITDA, and free cash flow have never been higher," said CEO Jim Meyer. The company's subscribers surpassed 30.6 million in the period.

SiriusXM's parent company Liberty Media (LMCA) recently made an offer to buy music streaming company Pandora Media (P) for $15 per share, spurring speculation that a merger between SiriusXM and Pandora may be imminent.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, TheStreet Ratings finds that the company's profit margins have been poor overall.

You can view the full analysis from the report here: SIRI

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