The analysts wrote, “Even with the revision in Sirius XM (SIRI) net 2012 subscriber guidance to 1.5mm from 1.3mm, possibly still conservative as the used car market develops,it seems that retention efforts across a now 22.3mm installed base viscerate plausible 2012 guidance upside on sales ($3.3bn), EBITDA ($875mm), and FCF ($700mm). Management did admit that subs on retention plans have increased without providing a precise delta, making us comfortable with only a $12.41 2013E estimated ARPU despite the nominal $14.49 January 2012 price. A gamechanger could be SIRI’s more aggressive posture on new apps such as thearrangement with Google that allows it to increasingly enter Pandora’s natural habitat. This complements higher functionality on Lynx 2.0 radios.”
Sirius XM Radio traded down 1.78% on Wednesday, hitting $2.21. Sirius XM Radio has a 1-year low of $1.27 and a 1-year high of $2.44. The company has a market cap of $8.299 billion and a price-to-earnings ratio of 32.14.
The company last announced its quarterly results on Tuesday, May 1st. It reported $0.02 earnings per share (EPS) for the previous quarter, beating the Thomson Reuters consensus estimate of $0.01 EPS by $0.01. The company’s quarterly revenue was up 11.2% on a year-over-year basis. Analysts expect that Sirius XM Radio will post $0.02 EPS next quarter.
A number of other analysts have also recently weighed in on SIRI. Analysts at Barrington Research reiterated an “outperform” rating on shares of Sirius XM Radio in a research note to investors on Tuesday. Separately, analysts at Maxim Group reiterated a “buy” rating on shares of Sirius XM Radio in a research note to investors on Tuesday. Finally, analysts at Morgan Stanley (NYSE: MS) raised their price target on shares of Sirius XM Radio from $2.30 to $2.40 in a research note to investors on Thursday, April 12nd. They now have an “equal weight” rating on the stock.
Sirius XM Radio Inc. broadcasts its music, sports, entertainment, comedy, talk, news, traffic and weather channels in the United States on a subscription fee basis through its two satellite radio systems.