Berkshire's Stock Moves: Insights on Sirius XM and More

Market Watch: Berkshire Hathaway cuts stocks but invests in Sirius XM. A turnaround may be on the horizon as they increase holdings.

Date: 18-02-2025

AI Rating: 6

Earnings Per Share (EPS): Sirius XM reported a diluted EPS growth of almost 24%, reaching $0.83, despite a 4.3% decline in revenue. This indicates improved profitability, which can positively influence investors' perception of the company.

Free Cash Flow (FCF): The forecasted increase in free cash flow from $1.02 billion to $1.15 billion for 2025 is positively viewed, signifying that the company's cost-cutting measures are effective. Increased free cash flow could lead to further investment opportunities or shareholder returns.

Subscriber Growth and Revenue: Although Sirius XM experienced a 4.3% revenue decline year-over-year and an overall decrease in subscribers, it did show a positive quarter with a net addition of 70,000 subscribers in Q4. This may suggest a potential turnaround that could enhance future revenue growth. However, investors should note the ongoing decline in total subscribers, indicating potential volatility in earnings.

In summary, despite some mixed results in the short term, the positive trajectory suggested by increased EPS and free cash flow, along with a slight uptick in subscribers, could bode well for Sirius XM's stock in the longer term.

Stocks: BRK.A BRK.B SIRI