SIRIUS XM Radio Inc.
) is all set to unveil its second-quarter 2012 results on Tuesday,
August 7, 2012, before the opening bell. The current Zacks
Consensus Estimate for the second quarter is pegged at 2 cents per
share, representing an annualized decline of 37.04%.
With respect to earnings surprises, SIRIUS XM has outperformed
the Zacks Consensus Estimate in the trailing four quarters with an
average earnings surprise of 133.33%.
First Quarter Recap
On May 1, 2012, SIRIUS XM reported its first-quarter 2012
financial results. Quarterly GAAP net income was $107.7 million or
2 cents per share against $78.2 million or 1 cent per share in the
prior-year quarter. First-quarter 2012 earnings per share of 2
cents were exactly in line with the Zacks Consensus Estimate.
Quarterly total revenue of $804.7 million was an improvement of
11% year over year, beating the Zacks Consensus Estimate of $800
million Operating income, in the reported quarter, was $199.2
million compared with $164.2 million in the year-ago quarter.
Agreement of Estimate Revisions
Over the last 30 days, none out of the 9 analysts covering the
stock revised their EPS estimates for the second and third quarter
For fiscal 2012, in the last 30 days, 3 out of the 9 analysts
covering the stock, raised the EPS estimates while one analyst
reduced the same. Likewise, for fiscal 2013, out of the 7 analysts
covering the stock, 3 analysts increased the EPS estimates while
none reduced them.
Magnitude of Estimate Revisions
For the second and the third quarter of 2012, over the last 30
days, the current Zacks Consensus Estimate was in line with the
previous estimate of 2 cents, respectively for both. However, for
fiscal 2012, the current Zacks Consensus Estimate was just a penny
above the earlier estimate of 7 cents. Similarly, for fiscal 2013,
the current Zacks Consensus Estimate was just a penny above the
earlier estimate of 10 cents.
In the previous quarter, SIRIUS XM reported EPS of 2 cents,
which surpassed the Zacks Consensus Estimate by just a penny. The
current Zacks Consensus Estimates for the ongoing quarter and the
upcoming quarter contain upside potential of 0.00%, respectively
(essentially a proxy for future earning surprises). However, for
fiscal 2012, the Zacks Consensus Estimate contains downside risk of
12.50% but for fiscal 2013, it contains a growth potential of
Despite higher programming costs and sluggish U.S. economic
growth coupled with stiff competition from Pioneer System and other
media players like
Cumulus Media Inc.
), we expect the company to perform well based on increased
programming line ups and improved ratings. We, thus maintain our
Currently, the company has a Zacks #3 Rank, implying a
short-term Hold rating.
CUMULUS MEDIA (CMLS): Free Stock Analysis
SIRIUS XM RADIO (SIRI): Free Stock Analysis
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