SIRIUS XM Radio Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

SIRIUS XM Radio (NAS: SIRI) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), SIRIUS XM Radio met expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.


Margins increased across the board.

Revenue details
SIRIUS XM Radio reported revenue of $804.7 million. The 11 analysts polled by S&P Capital IQ expected to see a top line of $803.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $723.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.01. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS of $0.02 for Q1 were 100% higher than the prior-year quarter's $0.01 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.7%, 110 basis points better than the prior-year quarter. Operating margin was 24.8%, 210 basis points better than the prior-year quarter. Net margin was 13.4%, 260 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $826.4 million. On the bottom line, the average EPS estimate is $0.01.

Next year's average estimate for revenue is $3.36 billion. The average EPS estimate is $0.06.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,453 members out of 5,420 rating the stock outperform, and 967 members rating it underperform. Among 790 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 554 give SIRIUS XM Radio a green thumbs-up, and 236 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SIRIUS XM Radio is outperform, with an average price target of $2.60.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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