Are You Expecting This From Sirius XM Radio?

Sirius XM Radio (Nasdaq: SIRI  ) is expected to report Q2 earnings on Aug. 7. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Sirius XM Radio's revenues will expand 12.0% and EPS will wither 0.0%.

The average estimate for revenue is $833.4 million. On the bottom line, the average EPS estimate is $0.02.

Revenue details
Last quarter, Sirius XM Radio reported revenue of $804.7 million. GAAP reported sales were 11% higher than the prior-year quarter's $723.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.01. GAAP EPS of $0.02 for Q1 were 100% higher than the prior-year quarter's $0.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 63.7%, 110 basis points better than the prior-year quarter. Operating margin was 24.8%, 210 basis points better than the prior-year quarter. Net margin was 13.4%, 260 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $3.38 billion. The average EPS estimate is $0.06.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,477 members out of 5,445 rating the stock outperform, and 968 members rating it underperform. Among 756 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 515 give Sirius XM Radio a green thumbs-up, and 241 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sirius XM Radio is outperform, with an average price target of $2.60.

Want to read more about Sirius XM? Our tech analyst and Sirius specialist has put together a premium research report that will help you know what to expect from this stock. Check it out now.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On August 06, 2012, at 10:21 AM, doubting wrote:

    All the numbers attributed here to siri growth are grossly lowballed.

    You shoud expect revenue over $840M and eps at 3 cents a share or more.

    The rationale is much better than expected sub growth in Q2 of 622K and July 9 guidance update to $3.4B. I assume the company was basing its update on very real data unlike outdated stale modeling of analysts. Moreover, SAC will be most likely between $50 and $55 due to a surge in used car market subs. This means that profit may be much better than expected (amplified by a huge sub growth).

    This is going to be a blow-out quarter followed by much stronger quarters this year and on. The company is on a roll and NO ONE will be able to stop it. The only thing that is preventing siri's share price explosion is the UNCERTAINTY with liberty media that may be cleared as early as this week.

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