Core Viewpoint - Sirius XM Holdings stock has declined approximately 60% in 2024, attributed to challenges in the automotive industry and advertising trends, leading to an undervaluation of the stock with a fair estimate of $27 per share, which is nearly 25% above the current market price [1] Financial Performance - For the first nine months of FY 2024, Sirius XM's revenues fell 2% year-over-year to $6.5 billion, driven by a 3% drop in subscriber revenue to $5 billion, while advertising revenue grew by 1% to $1.3 billion [2] - The company has reaffirmed its FY 2024 revenue guidance of $8.675 billion but has revised its FY 2025 revenue projection down to $8.5 billion, indicating limited growth with a notable revenue contraction of 0.6% in FY 2023 [2][3] - Sirius XM's total subscriber count decreased by 2% year-over-year to 33.2 million, reflecting a loss of about 800,000 subscribers since the end of 2021 [3][4] Subscriber Trends - The subscriber base has been declining since FY 2022, dropping from 34.2 million to 33.9 million in FY 2023, primarily due to slower growth in connected vehicle services and increased competition from streaming apps [4] - Sirius XM's monthly self-pay subscriber churn rate remains stable at 1.6%, but attracting new customers is a significant challenge [4][5] Competitive Landscape - Sirius XM faces intense competition from Spotify, which reported a 18.6% year-over-year revenue growth to $1.6 billion in Q3, surpassing Sirius XM's total subscriber revenue [4] - The company has launched a free ad-supported tier to counter competition, but results have been limited [4][5] Strategic Initiatives - Sirius XM's partnership with Howard Stern is set to expire in December 2025, highlighting the need for new deals with popular podcasts to maintain platform appeal [5][6] - The company has expanded its podcast offerings through strategic partnerships, including non-exclusive agreements with popular shows [6] Financial Challenges - Sirius XM has approximately $11 billion in debt and has expanded its pricing strategy to attract new users, which may risk existing subscribers downgrading to lower-cost options [7] - Revenue projections for FY 2025 are around $8.5 billion, with potential declines to about $8.3 billion by 2026 due to various challenges [7] Margin Analysis - Sirius XM's net margins fell from about 15% in 2021 to 13% in 2022, with a slight recovery to 14% in 2023, but there is a risk of margins declining to about 9% in the near term [8][9] Valuation Insights - Currently trading at about $22 per share, Sirius XM is valued at approximately 7x 2023 earnings and 8x estimated 2025 earnings, with a potential decline in net income from $1.3 billion in 2023 to about $750 million in 2026 [10] - If the company continues to underperform, investors may assign a lower multiple, potentially leading to a stock price of roughly $10 per share [10][11] Historical Performance - Sirius XM has experienced a decline in stock value over the past four years, with returns of 0% in 2021, -8% in 2022, -6% in 2023, and -58% in 2024 [12] Long-term Outlook - Despite current challenges, the company has a monopoly in satellite radio services and valuable expertise, suggesting potential for future success if a long-term view is adopted [14]

Many investors appreciate receiving dividends from companies. They often look at the current payout, the history of increases, and the company's financial statements to determine the dividend's sustainability.That's a fine place to start. But what if you want to know how much you'll receive in annual dividends?Sirius XM (SIRI -6.71%) pays regular quarterly dividends. How many shares do you need to own to receive $1,000 annually? Annual payoutsSirius XM recently executed a 1-for-10 reverse stock split. Adjus ...

NEW YORK, Jan. 7, 2025 /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) plans to release its fourth quarter and full-year 2024 operating and financial results on Thursday, January 30, and plans to hold an investor call the same day at 8:00 a.m. ET. A live webcast will be available on SiriusXM's Investor Relations website at https://investor.siriusxm.com.To participate by telephone, please dial 877.407.4019 (Toll-free) or +1 201.689.8337 (Local) 10 minutes prior to the start of the call and ask to be connected to the ...

Shares of Sirius XM Holdings (SIRI 3.85%), a satellite radio company, plunged last month after the company provided updated financial guidance for 2025. Management said revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would be lower than previous guidance.Investors were unnerved by the lowered expectations for 2025 and sent shares tumbling 15.4% in December, according to data provided by S&P Global Market Intelligence. Lowered expectationsSirius XM's management s ...

It's been a rough year for the media stock, but 2025 offers a lot of potential upside.There's no sugarcoating how 2024 played out for Sirius XM Holdings (SIRI -1.32%) shareholders. It's been a rough year. However, there's a lot of truth to the old mutual fund disclaimer that past results aren't an indicator of future performance.The satellite radio provider can bounce back in a major way in 2025. Let's go over some of the reasons this currently out-of-favor stock can roar back to life for investors in the m ...

SiriusXM (SIRI) is navigating a complex market landscape with a strategic approach that suggests the potential for recovery in 2025, despite a 57.5% decline in the year-to-date period. The company's third-quarter 2024 results reveal a business in transition, having completed its separation from Liberty Media and implementing aggressive initiatives to counter subscriber and revenue challenges.Year-to-date PerformanceImage Source: Zacks Investment ResearchWhile the company aims to reach ambitious targets of 5 ...

It's no secret that Warren Buffett loves dividend-paying value stocks, or "buying dollar bills for 80 cents," as he's sometimes put it.Now, the legendary investor seems to have found a new apple of his eye. Berkshire Hathaway (BRK.A -0.07%) (BRK.B 0.25%) has been aggressively buying shares of SiriusXM Holdings (SIRI 0.78%), the satellite radio company.On Thursday, Berkshire disclosed that it bought roughly 5 million more shares of the stock last week, bringing its ownership to 117.5 million, which is worth ...

Group 1 - Sirius XM (SIRI) shares increased by 12.2% to close at $23.08, following a period of 20.1% loss over the past four weeks, indicating a significant recovery in trading volume [1][2] - The rise in stock price is attributed to a favorable personal consumption price index report and Berkshire Hathaway's acquisition of an additional 5 million shares, increasing their stake to 35% [2] - Sirius XM's current stock price of $23.05 is near its 10-year low, while the dividend yield is close to a 10-year high, making it attractive for income-seeking investors [3] Group 2 - The consensus EPS estimate for Sirius XM has been revised 4.1% higher in the last 30 days, suggesting potential price appreciation [4] - The company is expected to report quarterly earnings of $0.63 per share, reflecting a year-over-year decline of 30%, with revenues projected at $2.17 billion, down 5% from the previous year [5] - Sirius XM is part of the Zacks Broadcast Radio and Television industry, which includes Fox Corporation, whose stock also saw a 1.5% increase [7]

Shares of SiriusXM (SIRI 12.15%) were rallying big today, up 12.3% as of 1:37 p.m. ET.While most of the market was up today on the back of a better-than-feared personal consumption price index report, beaten-down Sirius got an extra oomph thanks to Warren Buffett and his investing staff at Berkshire Hathaway (BRK.A 1.37%) (BRK.B 0.86%), which disclosed an increased stake in Sirius last night.Buffett & Co. try to bottom-tick SiriusOn Thursday night, Berkshire Hathaway filed a Form 4 with the Securities and E ...

Company Performance - Sirius XM Holdings stock (NASDAQ: SIRI) is down 53% year-to-date, significantly underperforming the S&P 500, which grew 28% [1] - The company has experienced three consecutive years of poor stock performance, with returns of 0% in 2021, -8% in 2022, and -6% in 2023 [3] - Revenue growth fell 4% year-over-year in Q3 2024 to $2.17 billion, missing analyst estimates of $2.19 billion [4] - Net income for Q3 2024 was -$2.5 billion, resulting in diluted earnings per share of -$8.74, down from $234 million in the same quarter of 2023 [4] Financial Metrics - The company reaffirmed its fiscal year 2024 revenue guidance of $8.675 billion but revised its 2025 revenue projection downward to $8.5 billion [1] - Adjusted EBITDA for Q3 2024 decreased 7% year-over-year to $693 million, driven by softer subscriber revenue [4] - For full-year 2024, the company expects adjusted EBITDA of approximately $2.7 billion and free cash flow of $1 billion [6] - Revenue per share is forecasted at $25.62 for 2024, with a revised valuation of around $27 per share based on a 1.1x P/S multiple [5] Subscriber and Revenue Trends - Total subscribers declined 2% year-over-year in Q3 2024, totaling 33.2 million, including paid promotional subscribers [2] - Subscriber revenue dropped 5% to $1.65 billion, while advertising revenue declined 2% to $450 million in Q3 2024 [4] - The self-pay monthly churn rate remained stable at 1.6% for the quarter, indicating consistent retention of existing subscribers [2] Industry and Competitive Challenges - The company faces challenges from a sluggish recovery in the automotive industry and adverse advertising trends [2] - Pandora, a subsidiary, continues to struggle with stabilizing monthly active users and listening hours [2] - Sirius XM Holdings completed its merger with Liberty Sirius XM Group in September 2024 and conducted a 1-for-10 reverse stock split [6] Peer Comparison - Apple, a peer, has seen its stock rise 29% year-to-date, significantly outperforming Sirius XM [1] - The Trefis High Quality Portfolio, consisting of 30 stocks, has outperformed the S&P 500 each year over the same period, providing better returns with less risk [4]