Sirius XM Radio (SIRI) is expected to report Q2 earnings before the market open on Thursday, August 6 with a conference call scheduled for 8 am ET.
Guidance
Analysts are looking for a loss of (1c) on revenue of $607.84M. The consensus range is (2c)-(1c) for EPS, and revenue of $604M-$610.92M, according to First Call. On July 1 the NY Times wrote that Sirius XM may be the "best investment play" on an American recovery. If the company can increase its subscribers, the Times said the company's business could eventually be worth about $8.3B, and there's room for today's stock price to more than double.
Analyst Views
JP Morgan analyst Lev Polinksy believes the company will report subscriber losses of about 400,000 in Q2 and flat revenue, but sees subscriber levels stabilizing in 2H09. Barrington analyst James Gross says "The financial risk has been reduced and now you are looking at a positive swing in EBITDA of more than $500M over the course of the year...All of that seems to provide much more favorable outlook than it did before." Gross notes that through the "cash for clunkers" government incentive program, Sirius should have an increased number of car buyers who will have the Sirius option to consider, which could revive subscriber growth. Analysts and investors will listen for comments from Sirius XM's management on the number of customers who downloaded a free application for Apple's (AAPL) App store that allows iPhone and iPod Touch users to access 120 channels.
