Sirius XM stock dropped and bounced


Sirius XM CEO Mel Karmazin proudly reported record results for Q3. However, the satellite radio company’s subscriber number was a bit below Wall Street expectations after a strong Q2 – although the company stuck with its subscriber forecast for the full year.

Subscribers were up 7% year-over-year in Q3 to 21.3 million and the company said its churn was stable.

Setting a record, revenues were up 6% to $763 – and Karmazin is guiding to over $3 billion in revenues for 2012. Adjusted EBITDA was up 16% in Q3 to $197 million – also a record.

Auto sales are recovering, Karmazin declared, and Sirius XM receivers were in two-thirds of the new cars sold in the US in Q3. That was up from around 60% a year ago.

On Wall Street, Sirius XM opened at $1.68, down 6.2% from Monday’s close of $1.79. The stock quickly rebounded and shot up into positive territory, as high as $1.83, before retreating. The stock closed down 3.4% at $1.73.