Sirius XM (SIRI) Stock Higher Today After Third Quarter Earnings Results - TheStreet

NEW YORK (TheStreet) -- Shares of Sirius XM Holdings (SIRI) - Get Report are up 0.60% to $3.37 in pre-market trade after the satellite radio service reported a better-than-expected 9.9% increase in third quarter revenue as strong U.S. auto sales drove a jump in paying subscribers, Reuters reports.

Sirius's paying subscribers gained 4.5% to 26.7 million as of Sept. 30, while the July-September quarter was the best for U.S. auto sales in eight years, Reuters noted.

The strong outlook for the U.S. car market, where Sirius has a strong foothold, helped the company raise its full-year revenue forecast to $4.15 billion from $4.10 billion.

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Sirius also raised its full-year free cash flow and total net subscriber additions forecasts.

The New York-based company said subscriber acquisition costs to install car radios fell to $35 in the quarter ended Sept. 30 from $45 a year earlier.

Net income more than doubled to $136.2 million, or 2 cents per share, from $62.89 million, or 1 cent per share.

Revenue increased to $1.06 billion from $961.5 million, beating the average analyst estimate of $1.04 billion, according to Thomson Reuters I/B/E/S.

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

"We rate SIRIUS XM HOLDINGS INC (SIRI) a BUY. This is driven by multiple 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, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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