Sirius XM Holdings Inc. (NASDAQ: SIRI) has reported its first-quarter earnings results. Revenues rose by 11% to $998 million. Net income was $94 million, if you adjust for a Liberty Media Corp. (NASDAQ: LMCA) stock repurchase agreement, but its adjusted net income was up 46% to $121 million, versus $83 million a year ago. Earnings per share came in at $0.02 for the first quarter.
Thomson Reuters was calling for earnings to be $0.02 per share and for revenue to be $994.6 million.
Sirius XM’s adjusted EBITDA rose by 28% to a record $335 million. Subscribers reached a record 25.8 million, after 266,799 net adds. Another record was that its free cash flow rose by 56% to a first-quarter record of $223 million.
The big buyback news is that on Friday the company is scheduled to repurchase 93 million shares from Liberty Media for $340 million. This will bring the total share repurchases for the year to 158 million shares, for a total of $550 million, and will leave Sirius XM with some $1.7 billion remaining under its existing share buyback authorization.
ALSO READ: Five Serious Stock Split Candidates After Apple’s Split
Sirius is also reiterating its 2014 guidance of net subscriber additions of revenue of more than $4.0 billion, roughly 1.25 million net subscriber additions, adjusted EBITDA of approximately $1.38 billion and free cash flow approaching $1.1 billion.
Chief Executive Officer Jim Meyer said:
SiriusXM performed ahead of our expectations in the first quarter, with 266,799 net subscriber additions including 173,480 self-pay net additions. For the ninth consecutive quarter we grew revenue at a double digit pace, and once again we set a new quarterly record for adjusted EBITDA and adjusted EBITDA margin. Free cash flow grew 56% compared to the prior year to a new first quarter record, and we resumed our stock repurchase program, helping to drive free cash flow per share up 64%.
Sirius XM shares closed at $3.17 on Wednesday, against a 52-week range of $3.00 to $4.18, and its stock is indicated only marginally higher after the report.
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
