Sirius XM Earnings on the Horizon

Sirius XM Radio Inc (NASDAQ:SIRI) will unveil its latest earnings on Tuesday, October 30, 2012. 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 analyst estimate is for net income of 2 cents per share, no change from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 514.3% versus last year to 43 cents.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by one cent in the first quarter, the company fell in line with expectations by reporting profit of 2 cents per share last quarter.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, profit rose 1708.3% to $3.13 billion (48 cents a share) from $173.3 million (3 cents a share) the year earlier, meeting analyst expectations. Revenue rose 12.5% to $837.5 million from $744.4 million.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose 73 cents (33.8%), from $2.16 to $2.89. 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.

Wall St. Revenue Expectations: Analysts are projecting a rise of 13.6% in revenue from the year-earlier quarter to $865.9 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.3% in the third quarter of the last fiscal year, 6.5% in the fourth quarter of the last fiscal year and 11.2% in the first quarter before increasing again in the second 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 0.96 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 improved this liquidity measure from 0.6 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 64.1% to $2.19 billion while liabilities rose by 2.6% to $2.3 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

These Companies Know Exactly When to Restock Shelves

David Einhorn’s New Investment Letter: I’m Still Long These Big Names

Are Facebook Shares Finally a Buy After Earnings?