Sirius XM (SIRI) Q4 Earnings in-Line

Sirius XM Holdings Inc. SIRI reported fourth-quarter 2017 earnings per share (excluding 6 cents from non-recurring items) of 5 cents, in-line with the Zacks Consensus Estimate. Earnings increased 25% on a year-over-year basis.

How Was the Estimate Revision Trend?

Investors should note that the earnings estimate revisions for Sirius XM depicted a healthy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for fourth-quarter earnings being revised 25% upward over the last 30 days.

However, Sirius XM has an unimpressive earnings surprise history. The company delivered positive surprise in only one of the past four quarters. The average earnings beat was 12.5%.

Revenues Higher Than Expected

Sirius XM recorded revenues of $1,403.9 million, which surpassed the Zacks Consensus Estimate of $1,395.4 million. Also, it compared favorably with the year-ago number of $1,303 million.

Key Stats to Note: The company’s expectations for net subscribers, revenue, adjusted EBITDA and free cash flow in 2018 remain unchanged. It anticipates approximately 1 million self-pay net subscriber additions in 2018. While revenues of approximately $5.7 billion are expected in 2018. Adjusted EBITDA in the year is estimated to be around $2.15 billion. Free cash flow is expected to be approximately $1.5 billion in 2018.

Zacks Rank: Currently, Sirius XM carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: The revenues beat pleased investors. Consequently, shares of the company were up in pre-market trading at the time of writing.

Check back later for our full write up on this Sirius XM earnings report later!

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