Sirius XM and NASDAQ OMX released their latest earnings reports before opening bell this morning. Sirius XM posted earnings of 3 cents per share, which was in line with the consensus estimate, on $1.17 billion in revenue, which was just slightly ahead of the consensus estimate of $1.15 billion for the third fiscal quarter. It represents an 11% year over year increase and a new record for third quarter revenue. In last year’s second quarter, the satellite radio provider posted earnings of 2 cents per share.
NASDAQ posted earnings of 88 cents per share on $529 million in revenue, compared to the analyst estimates of 86 cents per share in earnings and $526.2 million in revenue.
In a rare interview with Harvard Business School that was published online earlier this month, (it has since been taken down) value investor Seth Klarman spoke at length about his investment process, philosophy and the changes value investors have had to overcome during the past decade. Klarman’s hedge fund, the Boston-based Baupost has one of Read More
Sirius XM reports record 3Q revenue
Sirius XM’s adjusted EBITDA rose 17% to a new quarterly record of $447 million, compared to last year’s $381 million.
The company added that paid subscribership also set a new record for the quarter, rising 8% and closing in on 29 million in total. Sirius XM recorded 525,000 net new subscribers during the quarter, representing a 21% year over year increase. The company added 381,000 self-pay net subscribers, which was in line with last year’s third quarter growth, and saw self-pay subscribers climb 8% to another new record of 23.8 million subscribers.
Sirius XM management upped guidance for the full year as a result of the strong third quarter. They now expect to add over 1.6 million self-pay subscribers this year and a total of about 2 million total subscribers. They expect revenue to be around $4.53 billion and adjusted EBITDA to be around $1.65 billion.
As of this writing, shares of Sirius XM were up 1.79% at $3.98 per share in premarket trades.
NASDAQ OMX also posts record revenues
NASDAQ OMX’s revenue increased 6% year over year to set a new record. Organically, revenue increased 8%. GAAP earnings were 80 cents per share, compared to last year’s 71 cents per share.
The company’s Market Services division made up 38% of total net revenues or $200 million, an increase of $11 million which includes an operational increase of $22 million and an $11 million negative impact from currency exchange. NASDAQ OMX’s Equity Derivatives business made up 10% of its revenue, amounting to $51 million in revenue, while the Cash Equities segment was 13% of revenues or $67 million.
The Fixed Income, Currency and Commodities business was 4% of revenues or $23 million, while Access and Broker Services segment was 11% of revenues or $59 million. Information Services made up 25% of revenues or $132 million, and Data Products was 19% of revenues or $103 million. NASDAQ OMX’s Index Licensing and Services business was 6% of revenues or $29 million, while the Technology Solutions business represented 25% of revenue or $131 million. Corporate Solutions made up 14% of revenues or $72 million, and Market Technology was 11% of revenue or $59 million. Listing Services represented 12% of revenue or $66 million.
All of NASDAQ OMX’s segments clocked revenue increases except for the Fixed Income, Currency, and Commodities business, Technology Solutions segment, the Corporate Solutions segment, and Market Technology segment.
As of this writing, shares of NASDAQ OMX were flat with Wednesday’s close at $55.26 per share.