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Sirius XM Radio Inc (SIRI) EPS In-Line, Revenue Beats

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Sirius XM Radio Inc (NASDAQ:SIRI) released its earnings report for the three months ended June 30 this morning before the market opened. The company showed earnings of $0.02 per share for the three month period in this morning’s release on revenues totaling $940. On Wednesday’s market, shares in Sirius XM Radio Inc (NASDAQ:SIRI) ended the day at $3.68, flat on the day’s trading.

Sirius XM

In the run up to the release of this earnings report, analysts following Sirius XM Radio Inc (NASDAQ:SIRI) were looking for earnings of $0.02 from the company for the second quarter, while consensus revenue expectations came to $937 million. In the same quarter of 2012 the company earned 1 cent per share on revenue of $838 million.

Sirius rising

Since the start of 2013, stock in Sirius XM Radio Inc (NASDAQ:SIRI) has appreciated by more than 27% as investors continue to augment their outlook for the satellite radio provider. The firm is still trading at a rather low earnings multiple of just above seven, implying that investors don’t have a lot of faith in the company long term, though that might be changing. In the last year the company’s stock has increased by 75%.

The industry that Sirius XM Radio Inc (NASDAQ:SIRI) operates in is under siege from new entrants like Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL). The company’s satellite radio business is in almost direct competition with internet companies offering similar services over wireless connections. With internet being the designated technology of the future, analysts are not too bullish on Sirius XM Radio Inc (NASDAQ:SIRI) over the long term.

Sirius XM Radio Inc (NASDAQ:SIRI) is still expected to grow in the coming years. The firm earned 5 cents per share in 2012, and is expected to earn 9 cents for the full year 2013. Sirius XM Radio Inc (NASDAQ:SIRI) executives will host a conference call at 8 am EST to discuss this mornings earnings.



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