Researchers Think Clear Skies Remain Ahead for Sirius XM
May 1, 2016 by Jon C. OggSirius XM Holdings Inc. (NASDAQ: SIRI) has become a stock that is looking for direction, and maybe looking for its “next next-thing.” Sirius XM reported that its first-quarter net income totaled $171.3 million. This translates to $0.03 in earnings per share (EPS), which met the consensus estimate. Revenue was $1.2 billion in the first quarter. This compares to $1.08 billion a year ago and also beat the consensus estimate of $1.18 billion.
On the growth front, Sirius XM added 465,000 net new subscribers in the first quarter. The company further said that it now expects to add close to 1.6 million new net subscribers in 2016, which is about 200,000 higher than the company’s initial forecast and guidance. The question now is whether the car market remains strong or whether 2015 was “peak auto.”
While Sirius XM forecast 2016 full-year revenue of $4.9 billion, there are not many services that have this many subscribers who pay monthly. And as far as new competition, this just hasn’t come from the likes of Pandora and others like many feared. Another interesting issue for Sirius XM is that once you get it, it’s hard to go back to plain old local radio with all the ads.
24/7 Wall St. wanted to see what analysts have to say about the Sirius XM report.
24/7 Wall St.