Can Sirius XM Radio Continue to Rise?
With shares of Sirius XM Radio (NASDAQ:SIRI) trading around $4, is SIRI an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Sirius XM Radio broadcasts its music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States on a subscription fee basis through its two satellite radio systems. Subscribers can also receive music and other channels over the Internet, including through applications for mobile devices. Audio entertainment has always pleased consumers and is a medium that is growing in popularity. Sirius XM Radio is looking to expand its audio entertainment channels to every audio medium possible, which will surely translate to rising profits.
Sirius XM Radio reported third-quarter earnings on Thursday morning after the opening bell, giving results and guidance that missed analyst expectations. Sirius’s income was $62.89 million, down from $74.5 million a year ago, and although revenue grew 11 percent to $961.5 million, that figure fell short of estimates by over $10 million. Revenue per subscriber was also up to $12.29 from $12.14 last year, but again missed forecasts. Sirius said it expects to make $4 billion in revenue in 2014, a figure below Wall Street expectations.