What To Expect From Sirius XM’s Q4 Earnings

+26.91%
Upside
3.88
Market
4.92
Trefis
SIRI: Sirius XM logo
SIRI
Sirius XM

SiriusXM (NASDAQ: SIRI) is set to announce its fourth quarter results on Wednesday, January 31. We expect SiriusXM to report another quarter of revenue growth driven by solid growth in its subscriber base, backed by high penetration in the new car market and increasing penetration in the used car space. We have created an interactive dashboard that illustrates our expectations for the company’s fourth quarter. You can modify the Average revenue per user (ARPU),  Daily Weighted Average Subscribers, and share count expectations to see how changes would impact the company’s Q4 results.

Subscriber Growth To Drive Top Line

Subscriber revenue contributes nearly 82% of Sirius’s overall revenue, and this revenue grew 7% in the first three quarters of 2017, primarily driven by an increase in the daily weighted average number of subscribers and ARPU.

Relevant Articles
  1. Down 10% Since 2023, Will Sirius Stock Recoup These Losses After Q4 Results?
  2. What To Expect From Sirius’ Q3 After Stock Down 28% This Year?
  3. What’s Next For Sirius Stock After A 26% Fall This Year?
  4. Sirius Q2 Earnings: What Are We Watching?
  5. What To Expect From Sirius XM’s Stock Post Q1?
  6. Sirius Stock Down 30% So Far in 2023, What’s Next?

SiriusXM’s robust net subscriber growth is expected to drive the company’s Q4 revenues. The company recently provided an update on its strong performance in 2017 with respect to self-pay subscriber additions. Sirius announced that it added nearly 1.56 million self-pay subscribers in 2017, beating its guidance by approximately 1.4 million. This further led to the company ending 2017 with approximately 32.7 million net subscribers.

SiriusXM Grows Steadily In The New And Used Car Market

The slowdown in the auto industry is likely to soften new car sales in Q4, but this hasn’t affected Sirius’ penetration in the new car market. SiriusXM has steadily increased its penetration in the new car market and expects it to be around 76%. This will help the company to overcome the slowdown in new car sales. In addition, SiriusXM has been concentrating on increasing its penetration rate in the used car market as well.

View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research