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SIRIUS (SIRI) Q3 Earnings in Line, Revenues Beat Estimates
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SIRIUS XM Holdings Inc. (SIRI - Free Report) reported third-quarter 2016 financial numbers wherein the bottom line met the Zacks Consensus Estimate while the top line surpassed the same.
Earnings were in line with the Zacks Consensus Estimate of 4 cents per share and also improved on a year over year basis
Total revenue of $1.3 billiongrew9% year over year and also surpassed the Zacks Consensus Estimate of $1.26 billion.
Quarterly total operating expenses were $885.5 million, up 7.6% year over year. SIRIUS XM posted record third-quarter adjusted EBITDA growth of 10% year over year to $492 million.
At the end of the third quarter, SIRIUS XM had $442 million of cash from operations compared with $188.6 million in the prior-year quarter. Quarterly free cash flow in the quarter was $357 million as against $368.9 million in the year-ago quarter.
At the end of the quarter under review, SIRIUS XM had nearly $572.4 million of cash and cash equivalents and $5,743.4 million of outstanding debt compared with $111.8 million and $5,443.6 million, respectively, at the end of 2015.
Segment Wise Results
Quarterly subscriber revenues totaled $1,069.4 million compared with $974.5 million in the prior-year quarter. Advertising revenues were $34.3 million compared with $33.1 million a year ago. Equipment revenues were $31.3 million as against $25.88 million in the year-earlier quarter. Other revenues grossed $142.3 million in the quarter compared with $136.2 million in third-quarter 2015.
Subscriber Statistics
In the third quarter, SIRIUS XM added 345,000 net new subscribers. As a result, the total subscriber tally was up 7% year over year to 30,991,000 as of Sep 30, 2016, for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Payment category wise, Self-Pay subscriber count grew 7% year over year to 25,528,000,while Paid Promotional customer count was up6% year over year to 5,463,000.
Important Operating Metrics
Despite stiff competition from Alphabet Inc. (GOOGL - Free Report) , Apple Inc.(AAPL - Free Report) , and Pandora Media Inc. , SIRIUS XM’s average revenue per user inched up 3% year over year to $13.04 in the third quarter.
The company’s Board of Directors has approved and initiated a quarterly dividend of 1 cent per common share payable on Nov 30 to shareholders on record as of close of business on Nov 9, 2016. The company’s Board has also approved an additional $2 billion share repurchase program which brings the total share repurchase authorization to $10 billion.
Financial Outlook
The company anticipates 1.7 million net new subscriber additions in 2016, while revenues are expected to be approximately $5 billion. Adjusted EBITDA guidance has been raised to $1.85 billion from the previous projection of $1.8 billion.
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SIRIUS (SIRI) Q3 Earnings in Line, Revenues Beat Estimates
SIRIUS XM Holdings Inc. (SIRI - Free Report) reported third-quarter 2016 financial numbers wherein the bottom line met the Zacks Consensus Estimate while the top line surpassed the same.
Earnings were in line with the Zacks Consensus Estimate of 4 cents per share and also improved on a year over year basis
Total revenue of $1.3 billiongrew9% year over year and also surpassed the Zacks Consensus Estimate of $1.26 billion.
Quarterly total operating expenses were $885.5 million, up 7.6% year over year. SIRIUS XM posted record third-quarter adjusted EBITDA growth of 10% year over year to $492 million.
At the end of the third quarter, SIRIUS XM had $442 million of cash from operations compared with $188.6 million in the prior-year quarter. Quarterly free cash flow in the quarter was $357 million as against $368.9 million in the year-ago quarter.
At the end of the quarter under review, SIRIUS XM had nearly $572.4 million of cash and cash equivalents and $5,743.4 million of outstanding debt compared with $111.8 million and $5,443.6 million, respectively, at the end of 2015.
Segment Wise Results
Quarterly subscriber revenues totaled $1,069.4 million compared with $974.5 million in the prior-year quarter. Advertising revenues were $34.3 million compared with $33.1 million a year ago. Equipment revenues were $31.3 million as against $25.88 million in the year-earlier quarter. Other revenues grossed $142.3 million in the quarter compared with $136.2 million in third-quarter 2015.
Subscriber Statistics
In the third quarter, SIRIUS XM added 345,000 net new subscribers. As a result, the total subscriber tally was up 7% year over year to 30,991,000 as of Sep 30, 2016, for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Payment category wise, Self-Pay subscriber count grew 7% year over year to 25,528,000,while Paid Promotional customer count was up6% year over year to 5,463,000.
Important Operating Metrics
Despite stiff competition from Alphabet Inc. (GOOGL - Free Report) , Apple Inc.(AAPL - Free Report) , and Pandora Media Inc. , SIRIUS XM’s average revenue per user inched up 3% year over year to $13.04 in the third quarter.
SIRIUS XM HLDGS Price, Consensus and EPS Surprise
SIRIUS XM HLDGS Price, Consensus and EPS Surprise | SIRIUS XM HLDGS Quote
Dividend and Share Repurchase
The company’s Board of Directors has approved and initiated a quarterly dividend of 1 cent per common share payable on Nov 30 to shareholders on record as of close of business on Nov 9, 2016. The company’s Board has also approved an additional $2 billion share repurchase program which brings the total share repurchase authorization to $10 billion.
Financial Outlook
The company anticipates 1.7 million net new subscriber additions in 2016, while revenues are expected to be approximately $5 billion. Adjusted EBITDA guidance has been raised to $1.85 billion from the previous projection of $1.8 billion.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>