NEW YORK—Sirius XM Radio Inc. said Tuesday its third-quarter profit jumped 54 percent, as growth in new vehicle sales boosted the satellite radio company's customer base.
The profit beat Wall Street predictions, but investors weren't happy with the New York company's guidance and Sirius shares fell 15 cents, or 8.2 percent, to $1.69 in morning trading.
New York-based Sirius earned $104.2 million, or 2 cents per share, up from $67.6 million, or 1 cent per share, in the same quarter last year.
Revenue rose 6.3 percent to $762.6 million from $717.5 million. Including the recognition of deferred subscriber revenue, the company said it posted adjusted revenue of $764.8 million, up from an adjusted $722.5 million.
Analysts, on average, expected a profit of 1 cent per share on $764.5 million in sales, according to a FactSet poll.
The company's subscriber base grew 7 percent to end the quarter at 21.3 million, as automakers boosted production of new vehicles that included the radios and free trial subscriptions.
Sirius said it expects net subscriber additions to total 1.6 million this year and about $3 billion in revenue. Analysts polled by FactSet expect $3.02 billion in revenue for the year.
The company also projected $3.3 billion in revenue for 2012, while analysts expect $3.37 billion.