We expect Satellite radio company,
SIRIUS XM Radio Inc.
), to beat expectations when it reports second-quarter 2013
results on Jul 25, 2013 before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that SIRIUS XM is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP
: Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, stands at +50.00%.
This is very meaningful and a leading indicator of a likely
positive earnings surprise for shares.
Zacks #3 Rank (Hold)
: SIRIUS XM currently has a Zacks Rank #3. Note that stocks with
Zacks Ranks of #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a
significantly higher chance of beating earnings.
The combination of SIRIUS XM's Zacks Rank # 3 (Hold) and
+50.00% ESP makes us very confident of a positive earnings beat
on Jul 25, 2013.
What is Driving the Better-Than-Expected
SIRIUS XM in its interim report has reported a net addition of
715,000 customers for the second quarter of 2013, registering a
15% annualized and a staggering 58% sequential growth. With the
latest subscriber gain, SIRIUS XM has crossed the 25 million
customer mark and has added 1.17 million subscribers in the first
half of fiscal 2013.
Increased automobile sales and the continuous launch of
innovative products have mainly contributed to such strong
subscriber growth. This, in turn, is expected to boost SIRIUS
XM's top line.
Additionally, SIRIUS XM boasts a solid product portfolio and
strong business relationships with the original equipment
manufacturers. These have led the company to raise its 2013
fiscal outlook by 100,000 to 1.5 million.
Other Stocks to Consider
Other companies you may want to consider on the basis of our
model which shows that they have the right combination of
elements to post an earnings beat this quarter are as
Cablevision Systems Corporation
) currently has an Earnings ESP of +120.00% and holds a Zacks
Rank #3 (Hold).
Leap Wireless International Inc.
) has Earnings ESP of +3.00% and carries a Zacks Rank #3
) has an Earnings ESP of +1.89% and carries a Zacks Rank #3
CBS CORP (CBS): Free Stock Analysis Report
CABLEVISION SYS (CVC): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
SIRIUS XM RADIO (SIRI): Free Stock Analysis
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