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SIRIUS XM (SIRI) Q2 Earnings In Line, Revenues Top Estimates

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SIRIUS XM Holdings Inc. (SIRI - Free Report) reported second-quarter 2017 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 33.33% on a year-over-year basis.

Total revenue of $1,347.6 million grew 9.06% year over year and also beat the Zacks Consensus Estimate of $1,316.9 million.

Quarterly total operating expenses were $931.2 million, up 6.6% year over year. SIRIUS XM posted record second-quarter adjusted EBITDA growth of 12% year over year to $522 million. The company’s average revenue per user inched up 3% year over year to $13.22 in the second quarter.

At the end of the second quarter, SIRIUS XM had $483.2 million of cash from operations compared with $432.1 million in the prior-year quarter. Quarterly free cash flow was $416.7 million compared with $394.9 million in the year-ago quarter.

At the end of the quarter under review, SIRIUS XM had nearly $42.7 million of cash and cash equivalents and $6,453.7 million of long-term debt compared with $213.9 million and $5,842.8 million respectively, at the end of 2016. During the reported quarter, the company repurchased 94 million shares for $477 million. It shelled out approximately $280 million to complete the acquisition of Automatic Labs and the phase one of its Pandora (P - Free Report) investment. 

Segment Wise Results

Quarterly subscriber revenues totaled $1,111 million compared with $1,033.3 million in the prior-year quarter. Advertising revenues were $40.2 million compared with $33.5 million a year ago. Equipment revenues were $29.7 million compared with $27.8 million in the year-earlier quarter. Other revenues grossed $166.7 million in the quarter compared with $140.9 million in second-quarter 2016.

Subscriber Statistics

In the second quarter, SIRIUS XM added 445,000 net new subscribers. As a result, the total subscriber tally was up 5% year over year to 32 million as of Jun 30, 2017, for this Zacks Rank #2 (Buy) 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 6% year over year, while Paid Promotional customer count was down 2% year over year.

Sirius XM Holdings Inc. Price, Consensus and EPS Surprise


Sirius XM Holdings Inc. Price, Consensus and EPS Surprise | Sirius XM Holdings Inc. Quote


The company increased its full-year 2017 Self-pay net subscriber additions to 1.4 million, while revenues have been raised to approximately $5.375 billion. Adjusted EBITDA guidance has been raised to $2.05 billion, while free cash flow remains unchanged at around $1.5 billion.

Upcoming Releases

Investors interested in the broader consumer discretionary space are keenly waiting for second-quarter earnings reports from key players like Discovery Communications, Inc. (DISCA - Free Report) and AMC Networks Inc. (AMCX - Free Report) . While Discovery will report second-quarter earnings numbers on Aug 8, AMC Networks will reveal the same on Aug 3.

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