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This Week in Sirius XM Radio

Rick Munarriz
February 8, 2014

Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ: SIRI) moved lower on the week, sliding 2.5% to close at $3.49. The media darling's dip contrasted with modest gains for the Dow, Nasdaq, and S&P 500 on the week.

There was more going on beyond the share-price gyrations, though. Sirius XM posted quarterly results, and it was treated to an analyst downgrade. On the streaming front, Pandora (NYSE: P) also moved lower after disappointing investors with its fresh financials.

Let's take a closer look.

Earn, baby, earn
Sirius XM posted fourth-quarter results on Tuesday morning. We know by the lower stock price that the market wasn't wowed by the report, but let's take a closer look. 

Revenue climbed a better-than-expected 12% to top $1 billion. It's the first time Sirius XM hit 10 figures, two quarters earlier than Wall Street was forecasting. Its posted profit of $0.01 a share was half of what analysts were targeting, but once you back out one-time items and adjust for a more accurate tax rate, the satellite-radio king would have landed just ahead of where the pros were perched.

The market wasn't pleased with seeing monthly churn inch higher to 1.9% and the conversion rate slip to 42%, but that was partly explained during the subsequent conference call. Buyers of used cars are making up a larger part of the subscriber audience, and they convert less often after enjoying their free trials. The