Sprint Corp, Sirius XM Holdings Inc. Rise After Earnings

As of this writing, shares of Sirius XM were up 1.11% to $3.65 per share, while shares of Sprint were up 1.31% to $4.64 per share

Sirius XM and Sprint released the earnings results from their most recently completed quarters this morning. Sirius XM posted earnings of 3 cents per share on $1.09 billion in revenue. Analysts had been expecting earnings of 2 cents per share on $1.08 billion in revenue. In the same quarter last year, Sirius reported earnings of 1 cent per share on $1 billion in revenue.

Sprint posted losses of 60 cents per share, including a non-cash charge of $2.1 billion, on revenue of $8.97 billion, a 2% year over year decline. Analysts had been expecting losses of 24 cents per share on $8.68 billion in revenue.

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Key metrics from Sirius XM’s earnings report

Sirius XM reported net subscriber additions of 576,689, which beat the consensus estimate of 537,000 and was the fourth biggest quarter ever. The satellite radio provider’s churn rate fell from 1.9% to 1.8%. Acquisition cost per installation edged downward from $34 to $33, compared to the analyst expectation of $34.80.

Adjusted EBITDA was $1.47 billion for the year, a 26% improvement, and $381 million in the fourth quarter, a 17% increase and a new record.

The company still expects to see revenue of about $4.4 billion for this year with 1.2 million subscriber additions. Sirius XM expects adjusted EBITDA of about $1.6 billion for the full year.

Key metrics from Sprint’s earnings report

During the fourth quarter, Sprint lost 19,000 retail postpaid subscribers but added almost 1 million connections, a 42% increase. Postpaid net additions were 30,000, while prepaid net additions were 410,000 on the Sprint platform. The postpaid upgrade rate was the highest ever at 11.5%, while prepaid gross additions improved by almost 30%. Sprint reported a total contract customer turnover rate of 2.3%, compared to 2.07% in the same quarter a year ago.

Adjusted EBITDA was $1.04 billion. In the Wireless segment, adjusted EBITDA was $1.03 billion.

“We acknowledge there is a long way to go to reach our goals, including lowering our postpaid churn rates to competitive levels,” said Sprint CEO Marcelo Claure in a statement. “Our network performance continues to improve, and we are now focused on a strategy that will unlock the true potential of our spectrum assets. I am confident that we have the right plan in place to be successful.”