NEW YORK (TheStreet) -- Shares of Sirius XM (SIRI) - Get Report 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."
- You can view the full analysis from the report here: SIRI Ratings Report