Sirius XM Radio Fourth Quarter Earnings Sneak Peek

Sirius XM Radio Inc (NASDAQ:SIRI) will unveil its latest earnings on Tuesday, February 5, 2013. SIRIUS XM Radio broadcasts its music, sports, news, talk, entertainment, traffic and weather channels in the United States for a subscription fee through its proprietary satellite radio systems: the SIRIUS system and the XM system.

Sirius XM Radio Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 2 cents per share, a rise of twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 3 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 2 cents during the last month. Analysts are projecting profit to rise by 657.1% versus last year to 53 cents.

Past Earnings Performance: Last quarter, the company saw profit of 2 cents per share versus a mean estimate of net income of 2 cents per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the third quarter, profit fell 28.5% to $74.5 million (one cent a share) from $104.2 million (2 cents a share) the year earlier, meeting analyst expectations. Revenue rose 13.7% to $867.4 million from $762.5 million.

Here’s how Sirius XM traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

Screen Shot 2013-02-02 at 6.29.42 PM

Wall St. Revenue Expectations: Analysts predict a rise of 14.8% in revenue from the year-earlier quarter to $899.5 million.

Stock Price Performance: Between November 30, 2012 and January 30, 2013, the stock price had risen 38 cents (13.9%), from $2.77 to $3.15. The stock price saw one of its best stretches over the last year between August 9, 2012 and August 16, 2012, when shares rose for six straight days, increasing 7.9% (+19 cents) over that span. It saw one of its worst periods between May 9, 2012 and May 17, 2012 when shares fell for seven straight days, dropping 16.1% (-35 cents) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.5% in the fourth quarter of the last fiscal year, 11.2% in the first quarter and 12.5% in the second quarter before increasing again in the third quarter.

Analyst Ratings: There are seven out of 11 analysts surveyed (63.6%) rating Sirius XM Radio a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.81 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.96 in the second quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 15.1% to $1.86 billion while liabilities rose by 0.2% to $2.3 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)