Since moving as high as $4.18 a share on Wednesday morning, its highest point since 2007, the satellite radio broadcaster pulled back 3.8% to $3.97, with the majority of losses on Thursday morning after the company reported earnings that missed expectations.
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.
The total number of subscribers reached 25.6 million, pushed higher by 513,000 net subscriber additions and 373,000 self-pay net subscribers in the quarter. In August, the company announced its acquisition of Agero's connected vehicles unit, giving it further leverage to facilitate greater uptake of Sirius-enabled equipment in automobiles. The broadcaster says it is currently installed in more than 50 million vehicles.
Sirius management revised its full-year 2013 guidance, upping projected revenue to $3.77 billion from $3.7 billion. Revenue for 2014 is slated to be more than $4 billion.
"With continued growth in new automobile sales and an increasing number of existing self-pay subscribers selling their cars and rotating back into our trial funnel, we are increasing our guidance for net subscriber additions and reducing our guidance for self-pay subscriber additions by equal amounts," explained CEO Jim Meyer in a statement.