XM stock soars on narrowed loss

Satellite radio firm exceeds analysts' expectations, sees up to 7.9 million subscribers by year's end.


NEW YORK (CNNMoney.com) -- XM Satellite stock jumped Monday after the No. 1 satellite radio company sharply cut its losses in the most recent quarter.

XM Satellite's (up $1.83 to $13.22, Charts) shares shot up 13 percent in morning trade.

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The company, in a press release, said its third-quarter net loss was $83.8 million, or 32 cents a share. That was narrower than the $131.9 million, or 60 cents a share, lost a year earlier.

Analysts surveyed by Reuters had expected a loss of 45 cents a share.

XM Satellite ended the quarter with 7.2 million subscribers in the third quarter, up from 5 million in the same 2005 period.

The company expects to have between 7.7 million and 7.9 million at the end of the year, within the range it previously announced.

Both XM and No. 2 industry rival Sirius Satellite Radio Inc (up $0.29 to $4.05, Charts). are growing rapidly, but losing money as they beef up their technologies and enlist top-shelf entertainment, such as professional sports leagues and popular radio hosts.

The growth in the satellite radio industry has shaken up traditional radio's business. Clear Channel Communications (up $0.08 to $34.43, Charts), which owns an 8.3 percent stake in XM, has been exploring its buyout options in response to lowered ad revenue and a floundering business outlook.

Other traditional radio firms feeling the heat from satellite competition include CBS (up $0.49 to $29.00, Charts), which recently reported a decline in radio sales, as well as Citadel Broadcasting Corp. (up $0.45 to $10.38, Charts) and Cumulus Media Inc. (up $0.35 to $11.06, Charts)

----from staff and wire reports

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Sirius closing in on larger rival XM Satellite Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

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Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.