Sirius XM Radio Second Quarter Earnings Sneak Peek

Sirius XM Radio Inc (NASDAQ:SIRI) will unveil its latest earnings on Tuesday, August 7, 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, a decline of 33.3% 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 14.3% compared to last year’s 8 cents.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 2 cents per share versus a mean estimate of one cent. Two quarters ago, it reported net income of one cent per share.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

A Look Back: In the first quarter, profit rose 38% to $107.8 million (2 cents a share) from $78.1 million (one cent a share) the year earlier, exceeding analyst expectations. Revenue rose 11.2% to $804.7 million from $723.8 million.

Stock Price Performance: Between June 5, 2012 and August 1, 2012, the stock price had risen 26 cents (13.8%), from $1.89 to $2.15. The stock price saw one of its best stretches over the last year between October 5, 2011 and October 14, 2011, when shares rose for eight straight days, increasing 23.3% (+34 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 11.5% in revenue from the year-earlier quarter to $833 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 6.4% in the second quarter of the last fiscal year, 6.3% in the third quarter of the last fiscal year and 6.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: There are six out of 10 analysts surveyed (60%) rating Sirius XM Radio a buy. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.6 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.

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:

Is Boeing Stock a DREAM Investment?

Are These 5 TOP Stock Performers Overbought?

Time to Buy or Sell BofA Stock?