Boston, MA 10/25/2013 (wallstreetpr) – Sirius XM Radio Inc (NASDAQ:SIRI) has come out with its results for the last quarter. Though company has been able to show growth in quite a number of parameters, it has actually faltered on a very important one. But it seems that stock traders and investors are taking this result in their stride and believe in company’s long term viability. And this may not be a bad idea at all considering that company has been continuously buying back shares from open markets.
Revenues of this fee based subscription radio broadcaster did almost meet analyst expectations. Company’s revenues in third quarter jumped by almost 12% to settle at $961.5 million. This was a shade below street expectations of around $970 million. And with this, company has also decided to boldly revise its full year revenue projections upwards to $3.77 billion. Earlier it had projected revenues of $3.70 billion. Company also showed improvements on subscriber addition front. Sirius added close to 0.51 million customers this quarter. This is way up from 0.446 million it added in Q3 of 2012-13. Additions in last quarter have taken company’s subscriber’s base to 25.6 million.
But the problem for Sirius lies in net income numbers of last quarter. Company has recorded to a net profit of $62.9 million. Now this is almost 17% below what company achieved last year in same quarter. Earnings per share also remained flat at one cent. This shows that company may not be handling its operational expenses properly and they have risen by almost 7 percent and have adversely affected net income. Sirius is also going ahead with its stock repurchase programs and has bought shares worth $1.6 billion till date this year. And company has also approved another buyback of $2 billion going ahead. This shows that company’s management feels that company’s tocks are grossly undervalued.
