Satellite radio and media company Sirius XM (NASDAQ: SIRI) will be reporting results this Thursday before market open. Here’s what investors should know.
Sirius XM missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $2.07 billion, down 4.3% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ adjusted operating income estimates. It reported 32.86 million core subscribers, down 1.7% year on year.
Is Sirius XM a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sirius XM’s revenue to decline 2.2% year on year to $2.13 billion, improving from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 13 analysts). Sirius XM has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Sirius XM’s peers in the wireless, cable and satellite segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Verizon delivered year-on-year revenue growth of 5.2%, beating analysts’ expectations by 2.3%, and AT&T reported revenues up 3.5%, topping estimates by 1.3%. Verizon traded up 5.3% following the results while AT&T was also up 2%.
Read our full analysis of Verizon’s results here and AT&T’s results here.
There has been positive sentiment among investors in the wireless, cable and satellite segment, with share prices up 7.5% on average over the last month. Sirius XM is up 1.4% during the same time and is heading into earnings with an average analyst price target of $23.86 (compared to the current share price of $23.30).
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