SiriusXM Q2 Profit Misses, Equipment Revenue Sinks 22% on Chip Costs
SIRI sits 50% above its 52-week low of $19.765.
Summary
SiriusXM missed Q2 profit estimates with EPS of 70 cents vs. 78 cents expected, despite a slight revenue beat. Equipment revenue plunged 22% as memory chip costs surged, and Pandora monthly active users fell 7% to 39.8 million. The subscriber gain of 22,000 self-pay adds was a positive surprise, but the profit miss and hardware cost pressure drove shares down about 10% premarket. This follows earlier reports of the subscriber rebound and raised guidance, but the new details on the earnings miss and cost headwinds materially shift the picture. The COO departure announced today adds to the negative tone.
At the time of this announcement, SIRI was trading at $29.70 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $11B. The 52-week trading range was $19.77 to $32.66. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.