Sirius XM Radio Inc. Earnings: Sees Profit Move Up

Sirius XM Radio Inc. (NASDAQ:SIRI) reported its results for the first quarter. SIRIUS XM Radio broadcasts its music, sports, news, talk, entertainment, traffic and weather channels in the United States for a subscription fee through its proprietary satellite radio systems: the SIRIUS system and the XM system.

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Sirius XM Radio Earnings Cheat Sheet for the First Quarter

Results: Net income for Sirius XM Radio Inc. rose to $107.8 million (2 cents per share) vs. $78.1 million (one cent per share) in the same quarter a year earlier. This marks a rise of 38% from the year-earlier quarter.

Revenue: Rose 11.2% to $804.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sirius XM Radio Inc. fell in line with the mean analyst estimate of 2 cents per share. Analysts were expecting revenue of $803 million.

Quoting Management: “SiriusXM is starting the year with tremendous operational momentum. We grew subscribers faster than any first quarter since our 2008 merger of Sirius and XM, and we improved our self-pay monthly churn rate to 1.9% despite implementing a price increase at the beginning of the year. Rising auto sales and our strong execution should enable us to exceed our prior 2012 subscriber growth guidance of 1.3 million, which today we are raising to 1.5 million,” noted Mel Karmazin, Chief Executive Officer, SiriusXM.

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 6.5% to $783.7 million in the fourth quarter of the last fiscal year. The figure rose 6.3% in the third quarter of the last fiscal year from the year earlier and climbed 6.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company has met estimates for two consecutive quarters. It reported net income of one cent in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the second quarter have not changed from 2 cents. For the fiscal year, the average estimate has moved down from 8 cents a share to 7 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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