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Sirius XM (SIRI) Q3 Earnings Lag Estimates, Revenues Rise Y/Y
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Sirius XM Holdings (SIRI - Free Report) reported third-quarter 2022 earnings of 7 cents per share, which missed the Zacks Consensus Estimate by 12.5% and declined 30% year over year.
Total revenues on a reported basis increased 3.7% year over year to $2.28 billion. The figure beat the consensus mark by 0.42%.
Subscriber revenues (76.1% of total revenues) rose 4.1% from the year-ago quarter to $1.73 billion.
Meanwhile, advertisement revenues (20%) climbed 1.3% year over year to $457 million. Equipment revenues (2.2% of total revenues) increased 22% year over year to $50 million.
Other revenues (1.7% of total revenues) decreased 2.5% from the year-ago quarter to $39 million.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM segment revenues were $1.74 billion, up 4.9% year over year. While the subscriber base declined 0.3%, revenues witnessed growth due to a 5.9% rise in Average revenue per user (ARPU), which amounted to $15.72.
Self-pay subscribers increased 3% year over year to 32.22 million. Net self-pay subscribers increased 138K in the reported quarter.
Total subscribers were 34.17 million at the end of third-quarter 2022, down from 34.26 million reported in the year-ago quarter.
Sirius XM Canada subscribers fell by 27K to 2.23 million. Subscriber revenues rose 4.6% year over year to $1.60 billion. Advertising revenues were $50 million, up 6.4% year over year.
Equipment revenues increased 22% year over year to $50 million. Other revenues decreased 2.5% year over year to $39 million.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues remained flat year over year at $538 million, owing to 0.7% growth in advertising revenues that totaled $407 million which was offset by subscriber revenues that declined 2.2% year over year to $131 million.
During the quarter, the company's podcasting and off-platform businesses generated $123 million in total revenues, an increase of 37% year-over-year.
Monthly Active Users at Pandora were 48.8 million in the third quarter of 2022, down 7% year over year. Total ad-supported listener hours were 2.75 billion in the third quarter of 2022, down 4.8% year over year.
Pandora exited the third quarter with 6.26 million self-pay subscribers, down 2.9% year over year.
Operating Details
In the third quarter, total operating expenses increased 15.5% year over year to $1.81 billion.
Revenue share and royalty costs were up 5.7% year over year to $709 million. Programming & content costs totaled $146 million, up 9.8%.
Customer service & billing costs decreased 3.2% year over year to $121 million. Transmission costs declined 5.7% year over year to $50 million.
Subscriber acquisition costs rose 21.1% year over year to $86 million. General and administrative costs increased 7.3% to $117 million.
Engineering, design and development expenses remained flat year over year at $59 million. Sales and marketing expenses increased 5.5% to $268 million.
Adjusted EBITDA inched up 0.1% year over year to $720 million.
Balance Sheet & Cash Flow
As of Sep 30, 2022, cash and cash equivalents were $39 million compared with $126 million as of Jun 30, 2022.
The long-term debt, as of Sep 30, 2022, was $9.78 billion compared with $9.86 billion as of Jun 30, 2022.
In the third quarter of 2022, cash flow from operations was $1.3 billion compared with $1.37 billion in the year-ago quarter.
2022 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.8 billion. Free cash flow is expected to be $1.55 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
SIRI shares have returned 4.6% in the year-to-date period against the Zacks Consumer Discretionary sector’s decline of 36.9%.
AMC Entertainment, Reservoir Media and American Public Education are each scheduled to report their quarterly results on Nov 8.
The Zacks Consensus Estimate for AMC Entertainment’s third-quarter 2022 loss is pegged at 27 cents per share, down from 25 cents over the past 30 days.
The Zacks Consensus Estimate for Reservoir Media’s third-quarter 2022 earnings is pegged at 5 cents per share, unchanged over the past 30 days.
The consensus mark for American Public Education’s third-quarter 2022 earnings is pegged at 25 cents per share, unchanged in the past 30 days.
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Sirius XM (SIRI) Q3 Earnings Lag Estimates, Revenues Rise Y/Y
Sirius XM Holdings (SIRI - Free Report) reported third-quarter 2022 earnings of 7 cents per share, which missed the Zacks Consensus Estimate by 12.5% and declined 30% year over year.
Total revenues on a reported basis increased 3.7% year over year to $2.28 billion. The figure beat the consensus mark by 0.42%.
Subscriber revenues (76.1% of total revenues) rose 4.1% from the year-ago quarter to $1.73 billion.
Meanwhile, advertisement revenues (20%) climbed 1.3% year over year to $457 million. Equipment revenues (2.2% of total revenues) increased 22% year over year to $50 million.
Other revenues (1.7% of total revenues) decreased 2.5% from the year-ago quarter to $39 million.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Sirius XM Standalone Details
Sirius XM segment revenues were $1.74 billion, up 4.9% year over year. While the subscriber base declined 0.3%, revenues witnessed growth due to a 5.9% rise in Average revenue per user (ARPU), which amounted to $15.72.
Self-pay subscribers increased 3% year over year to 32.22 million. Net self-pay subscribers increased 138K in the reported quarter.
Total subscribers were 34.17 million at the end of third-quarter 2022, down from 34.26 million reported in the year-ago quarter.
Sirius XM Canada subscribers fell by 27K to 2.23 million. Subscriber revenues rose 4.6% year over year to $1.60 billion. Advertising revenues were $50 million, up 6.4% year over year.
Equipment revenues increased 22% year over year to $50 million. Other revenues decreased 2.5% year over year to $39 million.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues remained flat year over year at $538 million, owing to 0.7% growth in advertising revenues that totaled $407 million which was offset by subscriber revenues that declined 2.2% year over year to $131 million.
During the quarter, the company's podcasting and off-platform businesses generated $123 million in total revenues, an increase of 37% year-over-year.
Monthly Active Users at Pandora were 48.8 million in the third quarter of 2022, down 7% year over year. Total ad-supported listener hours were 2.75 billion in the third quarter of 2022, down 4.8% year over year.
Pandora exited the third quarter with 6.26 million self-pay subscribers, down 2.9% year over year.
Operating Details
In the third quarter, total operating expenses increased 15.5% year over year to $1.81 billion.
Revenue share and royalty costs were up 5.7% year over year to $709 million. Programming & content costs totaled $146 million, up 9.8%.
Customer service & billing costs decreased 3.2% year over year to $121 million. Transmission costs declined 5.7% year over year to $50 million.
Subscriber acquisition costs rose 21.1% year over year to $86 million. General and administrative costs increased 7.3% to $117 million.
Engineering, design and development expenses remained flat year over year at $59 million. Sales and marketing expenses increased 5.5% to $268 million.
Adjusted EBITDA inched up 0.1% year over year to $720 million.
Balance Sheet & Cash Flow
As of Sep 30, 2022, cash and cash equivalents were $39 million compared with $126 million as of Jun 30, 2022.
The long-term debt, as of Sep 30, 2022, was $9.78 billion compared with $9.86 billion as of Jun 30, 2022.
In the third quarter of 2022, cash flow from operations was $1.3 billion compared with $1.37 billion in the year-ago quarter.
2022 Guidance
Revenues are expected to be $9 billion. Adjusted EBITDA is expected to be $2.8 billion. Free cash flow is expected to be $1.55 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
SIRI shares have returned 4.6% in the year-to-date period against the Zacks Consumer Discretionary sector’s decline of 36.9%.
Some better-ranked stocks in the Consumer Discretionary sector include AMC Entertainment (AMC - Free Report) , Reservoir Media (RSVR - Free Report) and American Public Education (APEI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMC Entertainment, Reservoir Media and American Public Education are each scheduled to report their quarterly results on Nov 8.
The Zacks Consensus Estimate for AMC Entertainment’s third-quarter 2022 loss is pegged at 27 cents per share, down from 25 cents over the past 30 days.
The Zacks Consensus Estimate for Reservoir Media’s third-quarter 2022 earnings is pegged at 5 cents per share, unchanged over the past 30 days.
The consensus mark for American Public Education’s third-quarter 2022 earnings is pegged at 25 cents per share, unchanged in the past 30 days.