Boston, MA 11/19/2013 (wallstreetpr) – Despite higher sales revenues reported by U.S-based satellite radio streaming services provider Sirius XM Radio Inc (NASDAQ:SIRI) in its third quarter earnings report, higher operating costs eclipsed the rise in revenue, bringing down net earnings by about 16%. The operator has now forecasted higher full-year revenue projections, revising its expectations to about $3.77 billion from the earlier $3.7 billion estimate, while expecting 2014 revenue of approximately $4 billion, which just falls short of analyst estimates of around $4.17 billion.
With subscriber revenue scaling up by about 10% to $834.1 million, Sirius XM Radio Inc (NASDAQ:SIRI)’s net profits dropped to around $62.9 million, while earnings per share remained steady at $0.01 a share, falling behind the analyst expectations for earnings of $0.02 a share over revenue of $970 million. This is in spite of the revenue spike by 11% to about $961.5 million from $867 million a year ago. With current gross profit margins poised higher at the 65.01% over the margins a year ago, Sirius’s 6.54% overall net profit margin falls behind the industry average, while the company’s share price has scaled up by roughly 31.38% in comparison to its last year closing around the same time.
The Sirius XM Radio Inc (NASDAQ:SIRI) operator also intends to diversify its lines of business to extend beyond its core satellite radio services and recently executed its acquisition deal worth $530 million for the connected-vehicle-services portion of Medford, Massachusetts-based Agero Inc., a subsidiary of the U.S-based Cross Country Group. Agero’s connected-vehicle units are expected to provide strategic advantage to Sirius’s future business prospects.
Sirius XM Radio Inc (NASDAQ:SIRI) stocks have hovered more or less around he $3.8 mark for the past 90 days considered, signifying good investor faith. At trade closing on NASDAQ on November 18, Sirius’s shares were at $3.755 dipping by 2.72% from their previous closing at $3.86, while after-hours figures recorded a 0.4% further dip to $3.74.
