The June SAAR (seasonally adjusted annual rate) and a Goldman Sachs consumer survey displayed strong Sirius XM Radio (NASDAQ:SIRI) growth.
Analyst Matthew Niknam believes the new data has two important implications for the company moving forward. ”June light vehicle SAAR of 16.0mn exceeded both GS (15.7mn) and Street forecasts, which we view positively for volume growth at Sirius XM. Notably, this marks the first time since 2008 that auto sales have touched the 16.0mn run-rate,” said Niknam.
He continued: ”Our Consumer team, in its recent quarterly survey of 2,000 US consumers, found that respondents reported robust levels of optimism, with ‘intent to spend’ reaching a new high in 2Q13, likely owing to ongoing jobs creation and the wealth effect from rising home and equity prices. Importantly, consumers indicated the most enthusiasm for spending on autos; the delta between autos and all other categories was significant.”