Cash Flow Generation Doesn’t Enthuse Investors Of SIRIUS XM Radio Inc. (NASDAQ:SIRI)
The radio and broadcasting major SIRIUS XM Radio Inc. (NASDAQ:SIRI) released its third quarter operations result just before the markets opened today. The highlights of the results are as follows. Net income for the quarter stood at $63 Million. It clocked $962M in revenue this quarter. This represents an 11% increase in revenue in comparison to 3QFY12. Through the increase in sales, it was able to record free cash flow of $245 Million which represents a 26% increase over same quarter last year. Earnings per diluted share came in at $0.01 per share.
Commenting on the sidelines of the conference call, CEO of “SiriusXM” has called out the addition of “513,000 net subscriber and the 373,000 self-pay new subscribers” as a record of sort for this radio broadcaster.
Other highlights which got called out were the company’s effort to support the price of its stock by continuing to repurchase shares. Management disclosed that they have spent close to $1.6 billion YTD towards this effort. Winding up the results announcement with guidance for 4Q and FY14, the executives increased revenue guidance for rest of the fiscal FY13 and indicated that they expect the user base and revenue to grow in 2014 as well. Over the past 12 months the radio broadcaster had posted sales of $3.6 billion with net income of $607 million.
But the double digit surge in revenue the company was able to show in comparison to is previous year performance has not enthused the analysts. They had estimated revenue to come in at $969.4 million for the quarter. The earnings per diluted share remained stagnant in comparison to 3Q12. Post the announcement, the stock of the $25.8 billion market capitalized company has seen its market value drop by close to 1.36% to trade around $4 per share.