Sirius XM Posts Another Mixed Quarter; Strongest Satellite Net Adds in Nearly 2 Years

Sirius XM reported a mixed third quarter, as revenue met and EBITDA missed FactSet consensus. The SiriusXM service added 138,000 self-pay customers in the quarter, swinging the 2022 total to a gain for the year. Despite posting the best net addition quarter since the fourth quarter of 2020, management kept its 2022 subscriber guidance at positive net additions and remained unwilling to provide a target. Even with the weak advertising market, the firm reiterated its financial targets for 2022, with cost-cutting offsetting the potential loss of ad revenue. We are maintaining our $8.25 FVE.