Sirius XM Posts Mixed Quarterly Results and Sees Stock Drop
Shares of Sirius XM (NASDAQ: SIRI) fell sharply after the satellite radio provider reported mixed quarterly results, missing earnings estimates despite beating revenue expectations. The stock had been on a strong upward trend this year but dropped nearly 8% at market open following the report. The company's second-quarter revenue rose slightly to $2.16 billion and free cash flow increased by 48%, while net income climbed 17%. However, earnings per share came in below analyst expectations of $0.78 at $0.70. Sirius XM raised its full-year guidance across key metrics but the targets were seen as modest improvements over prior years. Despite a challenging backdrop during the pandemic and recent signs of recovery, investors appear to have had high expectations for continued strong performance from Sirius XM. The stock remains relatively cheap with a 3.3% dividend yield, though it has declined in appeal compared to earlier this year.