Why SiriusXM Radio Stock Is Down Today

stock SiriusXM Radio (Siri -7.26%) The satellite radio provider pulled out today after reporting interim results in its first-quarter earnings report. Although sales beat estimates, full-year guidance missed expectations and underlying growth remained weak.

As a result, the stock was down 4.9% as of 12:27 PM ET.

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Sirius is struggling to grow up

Sirius continued to lose self-pay subscribers, falling from 359,000 to 33 million at the end of 2023 due to a decline in trial starts and a high 1.7% self-pay monthly churn.

Overall revenue fell 1% to $2.16 billion, well above estimates of $2.12 billion, but SiriusXM’s revenue fell 1% to $1.7 billion. Pandora’s growth was slightly better. Advertising revenue growth was very bright at 7% compared to a 1% decline in subscription revenue.

Finally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 4% to $650 million, and earnings per share improved to $0.07 from $0.06 in the year-ago quarter.

“We are excited to share solid first quarter financial results, highlighted by record first quarter advertising revenue and strong consumer engagement with our newly launched content,” said CEO Jennifer Witz.

What’s next for SiriusXM?

SiriusXM stock has been essentially neutral for the past decade, and the Pandora acquisition didn’t deliver the jolt to the stock that some investors had hoped.

The company previously reaffirmed its 2024 revenue forecast of $8.75 billion, down 2.2% from 2023 levels. Additionally, adjusted EBITDA is expected to be $2.7 billion and free cash flow is expected to be $1.2 billion.

Those are solid numbers for a company with a market capitalization of $11 billion, but revenue forecasts of $8.79 billion were slightly below consensus, and growth concerns continue to weigh on the stock.

Until it returns to subscriber growth and achieves top-line growth, SiriusXM stock is likely to struggle.