Sirius XM Holdings Inc. (SIRI) saw its stock plummet 5.36% in pre-market trading on Thursday following the release of its second-quarter earnings report. The satellite radio company's results fell short of analysts' expectations, raising concerns about its financial performance and subscriber retention.
The company reported earnings per share (EPS) of $0.57, significantly below the $0.74 estimate from IBES. Net income for the quarter stood at $205 million, a substantial decrease from $354 million in the same period last year. While total revenue of $2.14 billion slightly exceeded the expected $2.13 billion, it still represented a 2% year-over-year decline.
Despite the disappointing earnings, Sirius XM showed some resilience in its subscriber metrics. The company lost 68,000 self-pay subscribers in the second quarter, a notable improvement from the 303,000 decrease in the previous quarter and better than the estimated loss of 176,840. This improvement was attributed to strong demand for exclusive content, especially podcasts, and a deal with popular television host Trevor Noah. Additionally, agreements with automotive dealers for three-year subscriptions and partnerships with electric vehicle makers helped mitigate subscriber losses. However, the ongoing attrition in its subscriber base continues to weigh on investor sentiment.
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