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Sirius XM (SIRI) Q2 Earnings Meet Estimates, Revenues Fall Y/Y
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Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2024 earnings of 8 cents per share, which met the Zacks Consensus Estimate and remained flat year over year.
Total revenues on a reported basis declined 3% year over year to $2.18 billion and missed the consensus mark by 1.21%.
Subscriber revenues (76.1% of total revenues) declined 3.9% from the year-ago quarter to $1.66 billion. The figure missed the Zacks Consensus Estimate by 0.2%.
Meanwhile, advertisement revenues (20.3%) decreased 0.4% year over year to $443 million. The figure missed the Zacks Consensus Estimate by 3.26%.
Equipment revenues (2.2% of total revenues) were flat year over year at $47 million. The figure missed the Zacks Consensus Estimate by 1.28%.
Other revenues (1.4% of total revenues) decreased 9.1% from the year-ago quarter to $30 million and missed the Zacks Consensus Estimate by 7.03%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
The Sirius XM Standalone segment’s revenues (75.3% of total revenues) were $1.6 billion, down 5% year over year.
Total subscriber base declined 2% year over year to 33.25 million, missing the Zacks Consensus Estimate by 0.33%.
Revenues witnessed a decline due to a 5% drop in subscriber revenues, which amounted to $1.52 billion. Advertising revenues were $43 million, down 4% year over year. Equipment revenues remained unchanged year over year at $47 million. Other revenues decreased 9% year over year to $30 million.
Self-pay subscribers decreased 1% year over year to 31.48 million. Net subscriber loss in the reported quarter was 173K against net additions of 39K in the year-ago period.
Average revenue per user amounted to $15.24, down 3% year over year. The figure missed the Zacks Consensus Estimate by 0.72%.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (24.7% of total revenues) gained 2% year over year to $538 million, owing to an 8% increase in subscriber revenues that totaled $138 million and advertising revenues that remained flat year over year at $400 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased 41K in the second quarter of 2024 to end the period at 6 million.
Total subscribers decreased 5% year over year, ending the second quarter at 5.95 million. The figure beat the Zacks Consensus Estimate by 2.15%.
Total ad-supported listener hours were 2.6 billion in the second quarter, down 5% year over year. Advertising revenue per thousand listener hours was $98.99, up 2% year over year.
Operating Details
In the second quarter, total operating expenses decreased 6% year over year to $1.67 billion. The company saved approximately $50 million through cost optimization efforts and consolidation across its businesses.
Adjusted EBITDA remained flat year over year at $702 million.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents were $100 million compared with $71 million as of Mar 31, 2024.
The long-term debt, as of Jun 30, 2024, was $9.04 billion compared with $8.72 billion as of Mar 31, 2024.
For the second quarter, cash flow from operations was $514 million compared with $451 million in the year-ago quarter.
Free cash flow was $343 million for the second quarter, up from $323 million reported in the prior-year period. The increase was driven by lower cash taxes paid due to the benefits from the company’s tax equity investments, and timing of other payments, partially offset by higher capital expenditures and lower cash receipts.
2024 Guidance
Revenues are expected to be $8.75 billion. Adjusted EBITDA is projected to be $2.7 billion. Free cash flow is expected to be $1.2 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
Warner Music Group is scheduled to report second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for WMG’s first-quarter EPS has increased 2 cents to 25 cents over the past 30 days.
Choice Hotels International is set to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for CHH’s EPS is pegged at $1.87, which has increased a cent over the past 30 days.
YETI is slated to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for YETI’s EPS is pegged at 63 cents, which has remained unchanged over the past 30 days.
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Sirius XM (SIRI) Q2 Earnings Meet Estimates, Revenues Fall Y/Y
Sirius XM Holdings (SIRI - Free Report) reported second-quarter 2024 earnings of 8 cents per share, which met the Zacks Consensus Estimate and remained flat year over year.
Total revenues on a reported basis declined 3% year over year to $2.18 billion and missed the consensus mark by 1.21%.
Subscriber revenues (76.1% of total revenues) declined 3.9% from the year-ago quarter to $1.66 billion. The figure missed the Zacks Consensus Estimate by 0.2%.
Meanwhile, advertisement revenues (20.3%) decreased 0.4% year over year to $443 million. The figure missed the Zacks Consensus Estimate by 3.26%.
Equipment revenues (2.2% of total revenues) were flat year over year at $47 million. The figure missed the Zacks Consensus Estimate by 1.28%.
Other revenues (1.4% of total revenues) decreased 9.1% from the year-ago quarter to $30 million and missed the Zacks Consensus Estimate by 7.03%.
Sirius XM Holdings Inc. Price, Consensus and EPS Surprise
Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. Quote
Sirius XM Standalone Details
The Sirius XM Standalone segment’s revenues (75.3% of total revenues) were $1.6 billion, down 5% year over year.
Total subscriber base declined 2% year over year to 33.25 million, missing the Zacks Consensus Estimate by 0.33%.
Revenues witnessed a decline due to a 5% drop in subscriber revenues, which amounted to $1.52 billion. Advertising revenues were $43 million, down 4% year over year. Equipment revenues remained unchanged year over year at $47 million. Other revenues decreased 9% year over year to $30 million.
Self-pay subscribers decreased 1% year over year to 31.48 million. Net subscriber loss in the reported quarter was 173K against net additions of 39K in the year-ago period.
Average revenue per user amounted to $15.24, down 3% year over year. The figure missed the Zacks Consensus Estimate by 0.72%.
Pandora & OFF Platform Details
Pandora and OFF platform’s revenues (24.7% of total revenues) gained 2% year over year to $538 million, owing to an 8% increase in subscriber revenues that totaled $138 million and advertising revenues that remained flat year over year at $400 million.
Self-pay subscribers of the Pandora Plus and Pandora Premium services decreased 41K in the second quarter of 2024 to end the period at 6 million.
Total subscribers decreased 5% year over year, ending the second quarter at 5.95 million. The figure beat the Zacks Consensus Estimate by 2.15%.
Total ad-supported listener hours were 2.6 billion in the second quarter, down 5% year over year. Advertising revenue per thousand listener hours was $98.99, up 2% year over year.
Operating Details
In the second quarter, total operating expenses decreased 6% year over year to $1.67 billion. The company saved approximately $50 million through cost optimization efforts and consolidation across its businesses.
Adjusted EBITDA remained flat year over year at $702 million.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents were $100 million compared with $71 million as of Mar 31, 2024.
The long-term debt, as of Jun 30, 2024, was $9.04 billion compared with $8.72 billion as of Mar 31, 2024.
For the second quarter, cash flow from operations was $514 million compared with $451 million in the year-ago quarter.
Free cash flow was $343 million for the second quarter, up from $323 million reported in the prior-year period. The increase was driven by lower cash taxes paid due to the benefits from the company’s tax equity investments, and timing of other payments, partially offset by higher capital expenditures and lower cash receipts.
2024 Guidance
Revenues are expected to be $8.75 billion. Adjusted EBITDA is projected to be $2.7 billion. Free cash flow is expected to be $1.2 billion.
Zacks Rank & Stocks to Consider
Currently, Sirius XM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are Warner Music Group (WMG - Free Report) , Choice Hotels International (CHH - Free Report) and YETI (YETI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Warner Music Group is scheduled to report second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for WMG’s first-quarter EPS has increased 2 cents to 25 cents over the past 30 days.
Choice Hotels International is set to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for CHH’s EPS is pegged at $1.87, which has increased a cent over the past 30 days.
YETI is slated to report second-quarter 2024 results on Aug 8. The Zacks Consensus Estimate for YETI’s EPS is pegged at 63 cents, which has remained unchanged over the past 30 days.