Sirius XM rises after solid Q3 subscriber growth
Diego Thomazini


Sirius XM (NASDAQ:SIRI) gained around 2% on Tuesday after the satellite radio company reported third quarter results that were in line with Wall Street estimates and delivered solid subscriber growth.
The New York-based firm generated adjusted earnings of $0.07 per share on revenue of $2.28B that grew 3.7% Y/Y.
The top line growth benefited from a 1% growth in SiriusXM segment self-pay subscribers and 6% growth in advertising on the SiriusXM platform, partially offset by a lower base of paid promotional subscribers. SiriusXM ended the quarter with 32.2M self-pay subscribers, +187,000 aided by trial funnel growth in the prior quarter and a growing base of streaming-only subscribers. 
Self-pay subscribers to the Pandora Plus and Pandora Premium services remained flat in Q3, ending the period at 6.3M.
Citi, which rates the stock as buy, said that the results were relatively in line with the consensus, though SiriusXM self-pay net adds came in better than expected. SA Quant system rates SIRI as hold.

The company continues to expect positive full-year 2022 self-pay net subscriber additions and reiterated 2022 guidance for revenue, adjusted EBITDA, and free cash flow. Total revenue is estimated to be ~$9B vs. $9.04B consensus, adjusted EBITDA of ~$2.8B, and free cash flow of ~ $1.55B.