Sirius Subs Rise on Strong Auto Sales
Sirius XM Radio’s latest quarter turned out to be a decent one for the satellite radio operator. Posting first-quarter financials before market open today, the company reported net income of $78.1 million, or 1 cent per share, up 88 percent from $41.6 million in the same period a year earlier and in line with analyst estimates. Revenue rose 9 percent to $723.8 million from $663.8 million–a bit less than the $736.3 million analysts had been expecting.
That disappointment, however, was tempered by strong auto sales that helped drive subscriber growth. Sirius added 373,064 net subscribers during the quarter, ending it with a new high of 20.6 million customers. That’s up 9 percent from 18.9 million a year earlier, and it likely would have been higher were it not for recent calamities in Japan.
“Consumers are buying cars again and demand for our product is strong,” CEO Mel Karmazin said in a statement. “Were it not for the OEM supply chain uncertainty resulting from the tragedy in Japan, we would be in a position to raise our subscriber guidance today.”
At $2.00, Sirius shares are up 4.71 percent as I write this.
