Golf Clap for SIRIUS XM Radio

SIRIUS XM Radio (Nasdaq: SIRI  ) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), SIRIUS XM Radio met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank.

Gross margins grew, operating margins increased, net margins dropped.

Revenue details
SIRIUS XM Radio reported revenue of $867.4 million. The 10 analysts polled by S&P Capital IQ expected revenue of $867.2 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $762.6 million.

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

EPS details
EPS came in at $0.02. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.02 per share. GAAP EPS of $0.01 for Q3 were 50% lower than the prior-year quarter's $0.02 per share.

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

Margin details
For the quarter, gross margin was 63.8%, 20 basis points better than the prior-year quarter. Operating margin was 26.7%, 250 basis points better than the prior-year quarter. Net margin was 8.6%, 510 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $895.5 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $3.41 billion. The average EPS estimate is $0.07.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,519 members out of 5,492 rating the stock outperform, and 973 members rating it underperform. Among 790 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 567 give SIRIUS XM Radio a green thumbs-up, and 223 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 $2.73.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 02, 2012, at 2:06 PM, NSFEddie wrote:

    I do not understand all the concern with "not making estimates" especially when actual data is trending in obvious positive manners as illustrated above with SIRI's actual revenue. It seems time and efforts could be better utilized identifying problems and developing practical solutions to these problems. There is way too much time and effort going into guessing the future and then defending these guesses.

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