NEW YORK (TheStreet) -- Shares of Sirius XM Holdings (SIRI) rose 0.84% to $3.60 in after-hours trading Tuesday after the satellite radio company increased its 2014 guidance for net subscriber additions to approximately 1.45 million from previous guidance of approximately 1.25 million.
The company also reaffirmed its 2014 financial guidance of revenue of approximately $4.1 billion, adjusted EBITDA of approximately $1.425 billion, and free cash flow of approximately $1.1 billion.
"SiriusXM's subscriber growth is tracking ahead of our prior expectations. The company is executing extremely well, and with this summer's strong new car sales, we now expect to comfortably exceed our previous subscriber target," said CEO Jim Meyer in a statement.
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 a number of 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."