Satellite radio and media company Sirius XM (NASDAQ: SIRI) will be reporting earnings this Thursday morning. Here’s what investors should know.
Sirius XM beat analysts’ revenue expectations last quarter, reporting revenues of $2.19 billion, flat year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Is Sirius XM a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sirius XM’s revenue to be flat year on year, improving from the 4.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sirius XM has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sirius XM’s peers in the consumer discretionary - wireless, cable and satellite segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Comcast delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 3.4%, and AT&T reported revenues up 2.9%, topping estimates by 0.9%. Comcast traded down 5.9% following the results while AT&T was up 2.8%.
Read our full analysis of Comcast’s results here and AT&T’s results here.
There has been positive sentiment among investors in the consumer discretionary - wireless, cable and satellite segment, with share prices up 12.5% on average over the last month. Sirius XM is up 14.7% during the same time and is heading into earnings with an average analyst price target of $26.31 (compared to the current share price of $26.19).
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