Sirius XM's Q4 Earnings and Revenues Surpass Estimates, Fall Y/Y

Sirius XM Holdings SIRI reported fourth-quarter 2024 earnings of 83 cents per share and beat the Zacks Consensus Estimate by 29.69%. The figure declined 7.8% on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues, on a reported basis, declined 4.3% year over year to $2.19 billion and missed the consensus mark by 0.73%.Sirius XM has completed its transaction with Liberty Media and now emerged as a fully independent public company. It has also successfully achieved its full-year goal of $200 million in gross savings.Sirius XM Holdings Inc. Price, Consensus and EPS Surprise Sirius XM Holdings Inc. price-consensus-eps-surprise-chart | Sirius XM Holdings Inc. QuoteSubscriber revenues (74.6% of total revenues) declined 5.1% from the year-ago quarter to $1.63 billion, beating the Zacks Consensus Estimate by 0.15%.Meanwhile, advertisement revenues (21.8% of total revenues) decreased 0.4% year over year to $477 million. The figure missed the Zacks Consensus Estimate by 0.45%. This decline was due to increasing new CTV supply in the market, increasing advertiser spending on performance products and low podcast inventory.Equipment revenues (1.9% of total revenues) decreased 17.6% year over year to $42 million. The figure missed the Zacks Consensus Estimate by 10.94%.Other revenues (1.6% of total revenues) decreased 2.7% year over year to $36 million and missed the Zacks Consensus Estimate by 0.86%.Sirius XM Standalone DetailsThe Sirius XM Standalone segment’s revenues (74% of total revenues) were $1.62 billion, down 5.6% year over year.Total subscriber base declined 2% year over year to 33.23 million, missing the Zacks Consensus Estimate by 0.32%.Revenues declined due to a 5.4% drop in subscriber revenues, which amounted to $1.5 billion. Advertising revenues were $43 million, flat year over year. Equipment revenues declined 17.6% year over year to $42 million. Other revenues declined 2.7% year over year to $36 million.Self-pay subscribers decreased 1% year over year to 31.65 million. Net subscriber additions in the reported quarter were 70K against a net loss of 94K in the year-ago period.Average revenue per user amounted to $15.11, down 3% year over year. The figure missed the Zacks Consensus Estimate by 0.3%.Pandora & OFF Platform DetailsPandora and OFF platform’s revenues (26% of total revenues) declined 0.5% year over year to $568 million, owing to a 0.5% decrease in advertising revenues, which totaled $434 million. Subscriber revenues decreased 0.7% year over year to $134 million.Self-pay subscribers decreased 5% year over year, ending the fourth quarter at 5.77 million. The figure missed the Zacks Consensus Estimate by 0.55%.Total ad-supported listener hours were 2.39 billion in the fourth quarter, down 6% year over year. Advertising revenue per thousand listener hours was $108.37, down 3% year over year.Operating DetailsIn the fourth quarter, total operating expenses decreased by 8.2% year over year to $1.68 billion. The operating expenses include legacy Liberty Sirius XM operating expenses.Adjusted EBITDA declined 3.8% year over year at $688 million.Balance Sheet & Cash FlowAs of Dec. 31, 2024, cash and cash equivalents were $162 million compared with $127 million as of Sept. 30, 2024.Long-term debt, as of Sept. 30, 2024, was $10.31 billion compared with $10.14 billion as of Sept. 30, 2024.For the fourth quarter, cash flow from operations was $1.71 billion compared with $1.06 billion in the year-ago quarter.Free cash flow was $516 million for the reported quarter, up from $402 million reported in the prior-year period.SIRI’s 2025 GuidanceRevenues are expected to be $8.5 billion. Adjusted EBITDA is projected to be $2.6 billion. Free cash flow is expected to be $1.15 billion.SIRI’s Zacks Rank & Stocks to ConsiderCurrently, Sirius XM carries a Zacks Rank #3 (Hold).Akamai Technologies AKAM, AMETEK AME and DoorDash DASH are some better-ranked stocks that investors can consider in the broader sector. AKAM, AME and DASH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Akamai Technologies shares have lost 18.2% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.AMETEK shares have gained 12.1% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.DoorDash shares have surged 75.8% in the trailing 12 months. DASH is set to report its fourth-quarter 2024 results on Feb. 11.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Akamai Technologies, Inc. (AKAM): Free Stock Analysis Report Sirius XM Holdings Inc. (SIRI): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report DoorDash, Inc. 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