Stock Alert for Sirius XM Radio Inc. (SIRI)
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    Trade Alert for Sirius XM Radio Inc. (SIRI)

    Sirius XM Radio Inc. (SIRI) is a New York-based satellite radio company which broadcasts more than 135 channels of commercial-free music, and premier sports, news, talk, entertainment, traffic, weather and data services to more than 20 million subscribers in cars, trucks, boats and aircraft, and through a wide range of mobile devices. It offers an array of content from some of the biggest names in entertainment, as well as from professional sports leagues, major colleges and national news and talk providers. SIRI programming is also available at sirius.com and xmradio.com, and on Apple iPhone and iPod touch, BlackBerry and Android-powered mobile devices using the Sirius XM Premium Online App. The Company has arrangements with every major automaker and its radio products are available at retail locations nationwide, as well as shop.sirius.com and shop.xmradio.com.

    Share Statistics (02-Aug-11) FY2009 FY2010 % Chg Q12010 Q12011 % Chg
    Symbol SIRI Revenue, $Mn 2,472.64 2,816.99 13.9% 663.78 723.84 9.0%
    Current price $2.09 Gross marg. 53.6% 51.5% -3.9% 52.3% 53.1% 1.5%
    52wk Range: $0.90-$2.44 Oper. margin 12.3% 21.9%
    Avg Vol (3m): 76,464,900 Net margin -14.2% 1.5% -110.6% 6.3% 10.8% 71.4%
    Market Cap. 8.25B
    Shares Outstanding 3.95B EPS, $ -0.10 0.03 -130.0% 0.01 0.01 0.0%

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of SIRI jumped as much as 5.21% on Tuesday following the satellite radio provider’s second-quarter earnings release. Investors cheered as the report showed higher profit and revenue, along with a reduction in expenses.

    For the quarter ended June 30, 2011, the Company posted a net income of $173.32 million, or $0.03 per share, up from $15.27 million, or breakeven per share, in the comparable quarter last year.  Revenue increased 6% to $744.4 million from $699.8 million in the year-ago quarter, as the Company realized higher subscriber count and higher average monthly churn for the quarter.

    The results compare to analysts’ consensus forecasts of earnings of $0.01 per share on $752.57 million in revenue.

    “Demand for satellite radio continues to grow, with gross additions reaching the highest level of any quarter since the merger of Sirius and XM, SIRI CEO Mel Karmazin commented in the release.  “Our all-time high OEM penetration rate is a reflection of the automakers’ satisfaction and their commitment to offer our service to their customers.”

    The Company reported an 8% to 21 million increase in subscribers for the quarter, boosted by auto sales growth and higher OEM penetration. Despite the larger audience base, the Company posted a 6% year-over-year decrease in programming and content expenses.  Looking forward, the Company expects to add 1.6 million net subscribers this year, up from its previous estimate of 1.4 million. It reaffirmed its full year revenue outlook of $3 billion, slightly lower than analysts’ expectations of 3.04 billion.

    SIRI has so far reached a 52-week high of $2.44, its 52-week low being $0.95. It is currently below its 50-day moving average of $2.11 and above its 200-day moving average of $1.93. Market capitalization currently stands at $8.25 billion and it has 3.95 billion outstanding shares.

    Financial Strength (02-Aug-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.38 0.83 0.49 0.62
    Current Ratio (MRQ) 0.40 1.12 0.64 0.95
    LT Debt to Equity (MRQ) 1,002.19 35.10 21.63 120.14
    Total Debt to Equity (MRQ) 1,035.88 38.27 36.07 158.09
    Interest Coverage (TTM) 0.19 3.14 0.30 22.8

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 11 polled investment analysts. Against the Sirius XM Radio Inc company.

    Analyst Detail

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    Latest 2 4 5 0 0 0
    4 weeks ago 2 4 5 0 0 0
    2 months ago 1 4 5 0 0 0
    3 months ago 1 4 5 0 0 0
    Last year 2 1 3 0 0 0

    The 11 analysts offering 12-month price targets for SIRI have a median target of 2.40, with a high estimate of 2.60 and a low estimate of 1.35. The median estimate represents a 13.74% increase from the last price of 2.11.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 10 769.92 790.67 737.70
    Quarter Ending Dec-11 10 789.23 834.00 760.00
    Year Ending Dec-11 13 3,039.07 3,133.00 2,944.90 2,993.91
    Year Ending Dec-12 13 3,384.41 3,608.00 3,219.70 3,209.71
    EARNINGS (per share)
    Quarter Ending Sep-11 9 0.01 0.03 0.00
    Quarter Ending Dec-11 10 0.01 0.02 0.00 0.00
    Year Ending Dec-11 9 0.03 0.06 0.01 0.02
    Year Ending Dec-12 11 0.07 0.16 0.03 0.05
    LT Growth Rate (%) 1 30.00 30.00 30.00 30.00

    Technical Analysis

    Source: http://stockcharts.com

    SIRI is trading below its 20-day moving average. However, this moving average is trending higher which suggests that there has been buying interest in this stock.

    SIRI has been relatively stable recently. This is evidenced by the width of its Bollinger Bands which are tighter than normal. Additionally, SIRI is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    The MACD for SIRI currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    August02-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Westwood One Inc. WWON 6.88 155.42M n/a n/a 0.36 n/a
    Cumulus Media Inc CMLS 3.51 149.25M n/a n/a 0.46 n/a
    Pandora Media Inc. P 13.93 2.22B n/a n/a 8.67 8.67
    Entercom Communications Corp. ETM 7.67 276.70M 7.91 6.39 0.69 0.66
    Radio One Inc. ROIAK 1.41 74.73M n/a 5.88 0.20 0.17
    Broadcasting – Radio Median       10.87 n/a 1.12 n/a
    Sirius XM Radio Inc. SIRI 2.09 8.25B 41.80 29.86 2.71 2.43

    Source: Thomson Financial

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