By Demian Russian
In a company press release issued Monday morning, Sirius XM Radio (NASDAQ:SIRI) raised full-year 2010 guidance, giving many investors and analysts what they were looking for during the company’s first quarter conference call. The company raised its guidance for full-year 2010 net subscriber additions to 750K, from the over 500K that had previously been forecast. The company now projects full-year 2010 pro forma revenue of $2.75M, pro forma adjusted income from operations of approximately $575 million, and free cash flow to exceed $100M. Many were looking for Sirius XM to raise guidance on the company’s Q1 results, with the company reporting net subscriber additions of 171K and net income of $41M, swinging the company to a profit of a penny per share.
“Our continuing strong operating performance, the recovering economy, and improving auto sales support our increase in guidance today.”
- Mel Karmazin, Sirius XM CEO
Sirius XM’s raised guidance comes on the same day General Motors, one of the Satellite Radio provider’s major OEM partners, announced that they too have swung to a profit in Q1. GM posted a net profit of $865 million, compared to a loss of $5.98 billion during the same period a year ago. The last time the company reported a quarterly profit was in the second quarter of 2007. GM reported that it had ramped up production by nearly 57 percent compared to the same period a year ago, and that it was on track to report its first full-year profit since 2004. The U.S. Government now owns approximately 61% of the company.
Disclosure: Long SIRI