Sirius XM Radio Inc (NASDAQ:SIRI) is scheduled to report its scheduled to reports its second quarter financial results on Thursday, July 25. Analysts at Zacks Equity Research believe that the satellite-radio service provider will beat the consensus estimate of Wall Street analysts.

Sirius XM

Zacks Equity Research explained that Sirius XM Radio Inc (NASDAQ:SIRI) will deliver an earnings surprise based positive Zacks ESP (expected surprise prediction), which represents the difference between the most accurate estimate and the Zacks consensus estimate. According to the research firm, the positive Zacks ESP for Sirius XM Radios stands at +50 percent, which indicates a “very meaningful and a leading indicator of a likely positive earnings surprise for shares”.

Zacks has a #3 Rank on Sirius XM

In addition, Zacks Equity Research has #3 Rank (Hold) rating for the shares of Sirius XM Radio Inc (NASDAQ:SIRI), which means the company has a significantly higher chance to outperform earnings. The research firm said, “The combination of SIRIUS XM’s Zacks Rank # 3 (Hold) and +50.00 percent ESP makes us very confident of a positive earnings beat.”

Zacks Equity research noted that Sirius XM Radio Inc (NASDAQ:SIRI) reported an additional 715,000 customers in its interim report for the second quarter. The figure represents a 15 percent annual growth or 58 percent sequential growth. The company reached its 25 million customer mark and added 1.17 million subscribers in the first half of the current fiscal year.

“Increased automobile sales and the continuous launch of innovative products have mainly contributed to such strong subscriber growth. This, in turn, is expected to boost SIRIUS XM’s top line,” wrote Zacks Equity Research.

Sirius XM has a solid portfolio

In addition, the research firm said Sirius XM Radio Inc (NASDAQ:SIRI) has a solid product portfolio and strong business relationships with original equipment manufacturers, which allows the company to increase 2013 fiscal outlook from 100,000 to 1.5 million.

Wall Street analysts have an average consensus EPS estimate of $0.02 and revenue estimate of $934.9 million. During the previous quarter, the company posted $0.02 EPS and $899.2 million revenue.

Recent partnership with AT&T

Sirius XM Radio Inc (NASDAQ:SIRI) recently announced its partnership with AT&T Inc. (NYSE:T) to provide mobile connectivity to support a suite of security services to the vehicles of Nissan Motor Co., Ltd. (OTCMKTS:NSANY) (TYO:7201) in North America.

The stock price of Sirius XM Radio Inc (NASDAQ:SIRI) is down by more than 1 percent to $3.63 per share during the afternoon trading in New York on Wednesday.