XM Satellite Radio Holdings Inc. posted a wider second-quarter loss Thursday and again cut its full-year subscriber forecasts, but its stock rose after the loss came in below what Wall Street had been expecting.
XM's shares have been beaten down this year after a string of bad news announcements, and the rebound in the shares marked a slight reprieve for a company that had once been an investor favorite.
The Washington-based company lost $231.7 million, or 87 cents a share, in the three months ended June 30, versus a loss of $148.8 million, or 70 cents a share, a year ago. The loss included $105 million in charges for restructuring debt and other non-operating items.
Revenue nearly doubled to $227.9 million from $125.4 million a year ago. However, XM cut its full-year subscriber estimate for the second time in two months, saying it expects to have between 7.7 million and 8.2 million customers by the end of this year, up from 7 million now.
Even with the lower subscriber estimate, XM Chief Executive Hugh Panero told investors on a conference call that the company was sticking by its target of becoming profitable from operations in the fourth quarter of this year and for full-year 2007.
XM's shares tumbled in early trading to a three-year low of $9.63 but bounced back, rising 53 cents, or 5.1%, to close at $10.89.