Is Sirius XM Stock Slowly Fading Away?
The bar of expectations was low heading into Sirius XM Holdings' (NASDAQ: SIRI) second-quarter results on Thursday morning. The satellite-radio provider still bumped its head against the limbo stick. Revenue clocked in at $2.18 billion for the three months ending in June, a 3% decline from where it landed a year earlier. Analysts were holding out for just a 2% dip.
The year-over-year decrease in business may not seem like much, but it's the second-worst slide in the company's 30 years as a publicly traded company. The only worse performance was a 5% top-line retreat in the second quarter of 2020 when the pandemic had folks hunkering down at home. Cars were parked, and there wasn't a lot of interest in buying new rides with satellite radio receivers. It was an easy economic decision to nix the premium subscriptions to the service.
After eight straight years of organic revenue gains in the single digits, Sirius XM posted a 0.6% decline in 2023. This year will likely be worse. The $8.75 billion in revenue that Sirius XM continues to target for all of 2024 is 2.3% lower than where it was last year.
Source Fool.com
