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Sirius XM & Analyst Expectations

|Includes: Sirius XM Holdings Inc. (SIRI)

 

What does the earnings call hold in store for Sirius XM investors? Two separate research reports issued late last week by Standard & Poors and Reuters can offer investors valuable insights into what industry analysts will be looking for on Thursday as Sirius XM is expected to report its Q1 2009 results May 7, 2009 at 8:00 AM ET.

Standard & Poors issued a research report on Sirus XM dated May 02,2009. The report reaffirms S&P's HOLD rating, CCC+ credit rating and .50 12 month price target. S&P expects:

"SIRI to add a net total of 1.2 million to 1.3 million customers in 2009, ending the year with more than 20.2 million subscribers, assuming slightly higher average self-pay monthly churn of about 2.0%. Also, we see unit growth mainly driven by automotive OEM factory-installed units, against a relatively anaemic retail distribution channel. With a modest decline in average revenue per user partly due to family plan and multi-year discounts, we project 2009 total revenues of about $2.6 billion."

Reuters issued a report dated April 30,2009 maintaining its OUTPERFORM rating.

Currently Argus Research Corp., Barrington Research Associates, JP Morgan Securities, Jackson Securities, Janco Partners, Inc., Miller Tabak & Co., LLC, Morgan Joseph & Co Inc., Morgan Stanley & Company, RBC Capital Markets (US) and UBS Warburg offer coverage of Sirius XM. The seven that have offered ratings include 6 holds and 1 sell rating.

Estimates call for a loss of .02 per share on 647.4 million dollars in revenue to be reported.

Position: Long SIRI