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Sirius XM Radio (NASDAQ:SIRI) announced Tuesday that it added 715,000 net new subscribers in the second quarter, bringing total subscribers to more than 25 million. Strong auto sales helped drive these new additions. This is a 15% increase in net additions over the second quarter last year. And it is a new post-merger record for quarterly net subscriber additions. Sirius also raised its 2013 guidance for net subscriber additions to 1.5 million from 1.4 million:

"The new subscriber additions in the quarter have helped SiriusXM reach an exciting new milestone that reflects the popularity and reach of SiriusXM programming and services," said Jim Meyer, CEO, SiriusXM. "The quarterly results bolster SiriusXM's leadership position in a dynamic audio entertainment marketplace as we continue our trend of strong, profitable growth. Additionally, we are raising 2013 subscriber guidance to 1.5 million net additions based on our record performance in the quarter." The Company also reiterated its existing 2013 guidance for 1.6 million self-pay net subscriber additions.

As I mentioned in my last Sirius XM article, this news could make the shares really pop. And since subscriptions are the main revenue source at the company, there will probably be a positive surprise when earnings for the second quarter are announced. Before the announcement revenue was projected to be close to $935 million. If it jumps 15% like the subs just did, Q2 revenue would surpass the highest estimate of $952 million, landing at $963 million:

Earnings Est Current Qtr.
Jun 13
Next Qtr.
Sep 13
Current Year
Dec 13
Next Year
Dec 14
Avg. Estimate 0.02 0.02 0.09 0.12
No. of Analysts 13.00 13.00 13.00 13.00
Low Estimate 0.02 0.02 0.07 0.08
High Estimate 0.03 0.03 0.13 0.17
Year Ago EPS 0.48 0.01 0.51 0.09
Revenue Est Current Qtr.
Jun 13
Next Qtr.
Sep 13
Current Year
Dec 13
Next Year
Dec 14
Avg. Estimate 934.82M 963.68M 3.79B 4.15B
No. of Analysts 12 12 15 14
Low Estimate 915.90M 938.29M 3.71B 3.96B
High Estimate 952.00M 986.00M 3.86B 4.29B
Year Ago Sales 837.54M 867.36M 3.40B 3.79B
Sales Growth (year/est) 11.60% 11.10% 11.30% 9.50%

Sirius shares continue to trounce the rest of the market indices by over 40% since last year:

Chart forSIRIUS XM Radio Inc. (<a href=

Price targets remain unchanged, with the high at $4.20. However, there may be some analyst upgrades on this latest news:

Price Target Summary

Mean Target: 3.66
Median Target: 3.70
High Target: 4.20
Low Target: 3.00
No. of Brokers: 15

Short interest remains well over 300 million shares which would take at least five days to cover. Sirius is up 9 cents to $3.57 in pre-market trading on Tuesday morning. This should cause a tremendous short squeeze over the next week before the July options close, as shorts rush to cover. There is a very strong possibility that Sirius will surpass the 52 week high of $3.63 today.

Source: Sirius XM News Sends Shares Higher As Shorts Rush To Cover