Sirius XM Holdings Inc.
), one of the leading satellite radio companies in the U.S., is
slated to report its fourth-quarter 2013 earnings on Feb 4, 2014,
before the opening bell.
In the prior quarter, the company's earnings came in line with
the Zacks Consensus Estimate. Let's see how things are shaping up
for this announcement.
Factors to Influence This Quarter
The company reported 1.66 million subscriber additions in
2013, significantly exceeding its guidance of 1.60 million
customers. Robust growth in subscribers is mainly attributed to
increased automobile sales and the continuous launch of
Liberty Media Corp. recently expressed its desire to take full
control of Sirius XM Radio Inc., the largest satellite radio
entertainment provider in the U.S. At present, Liberty Media
holds approximately 53% of Sirius XM. The new proposal will give
Liberty Media a 100% stake in Sirius XM.
The decision to acquire a 100% ownership in Sirius XM is
viewed as Liberty Media's attempt to consolidate its position in
the U.S. cable TV industry. Liberty Media currently controls a
27.3% stake in Charter Communications Inc., the fourth largest
pay-TV operator in the U.S.
Sirius XM is facing significant competition on several fronts.
Pioneer System, a leading car information system manufacturer,
recently unveiled a new car stereo called "AVIC-X920BT" that
supports Internet radio. Such innovative product launches are
also posing significant competitive threat to the company.
Our proven model does not conclusively show that Sirius XM is
likely to beat the Zacks Consensus Estimate this quarter. That is
because a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. Unfortunately, this is not the case here as
elaborated below. The Sell-rated stocks (#4 and 5) should never
be considered going into an earnings announcement.
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at $0.02. Hence, the ESP is 0.00%.
Zacks Rank #3 (Hold):
Sirius XM's Zacks Rank #3 complicates the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Stocks to Consider
Here are some companies to consider as our model shows these
have the right combination of elements to post an earnings beat
) with earnings ESP of +6.67% and Zacks Rank #2 (Buy).
Lions Gate Entertainment Corp.
) with earnings ESP of +14.55% and Zacks Rank #3.
) with earnings ESP of +6.34% and Zacks Rank #2 (Buy).
BAIDU INC (BIDU): Free Stock Analysis Report
LIONS GATE ETMT (LGF): Free Stock Analysis
SIRIUS XM HLDGS (SIRI): Free Stock Analysis
STARZ-LIB CAP-A (STRZA): Free Stock Analysis
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