Sirius XM Radio Inc. Earnings: Beats Estimates

The Cheat Sheet

Sirius XM Radio Inc. reported net income above Wall Street’s expectations for the third quarter. 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.

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Sirius XM Radio Earnings Cheat Sheet for the Third Quarter

Results: Net income for the broadcasting company rose to $104.2 million (2 cents per share) vs. $67.6 million (one cent per share) in the same quarter a year earlier. This marks a rise of 54.1% from the year earlier quarter.
Revenue: Rose 6.3% to $762.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SIRI beat the mean analyst estimate of one cent per share. Analysts were expecting revenue of $764.2 million.

Quoting Management: “In the third quarter, we once again delivered record levels of subscribers, revenue and adjusted EBITDA, and we are confident our positive momentum will continue in the fourth quarter. This has been an exciting year for SiriusXM, but I’m even more excited by the many opportunities awaiting us in 2012. We plan to accelerate our revenue and adjusted EBITDA growth, deliver more free cash flow than ever before, and we are thrilled to offer exciting new content and innovations to our existing and future subscribers,” said Mel Karmazin, Chief Executive Officer, SiriusXM.

Key Stats:
Revenue has risen the past four quarters. Revenue increased 6.4% to $744.4 million in the second quarter. The figure rose 9% in the first quarter from the year earlier and climbed 8.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 3 cents versus a mean estimate of net income of one cent per share.

Looking Forward: The average estimate for the fourth quarter is steady at one cent a share. Over the past three months, the average estimate for the fiscal year has climbed from 5 cents per to share to 6 cents.

Competitors to Watch: Westwood One, Inc. , Entercom Communications Corp. , Cumulus Media Inc. , Emmis Communications Corp. , Radio One, Inc. , CBS Corporation , Disney , Time Warner , Grupo Radio Centro SAB de CV , Salem Communications Corp and Saga Communications, Inc. .

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(Source: Xignite Financials)

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