SiriusXM announced today that it plans to announce first quarter 2014 financial and operating results on Thursday, April 24, 2014. The company will hold a conference call at 8:00 am ET on Thursday, April 24, to discuss these results. SiriusXM typically announces results prior to the market open. This quarterly call is happening just a few weeks after the end of the quarter, which is also not unheard of for the satellite radio provider.
Consensus of analysts put EPS expectations at 2 cents per share on revenue of $996 million. Last year the company earned 2 cents in Q1. The first quarter has been a tough one for the equity. This is mostly the result of uncertainty surrounding the intent of Liberty Media in combination with guidance for 2014 that is perhaps a bit flatter than the street really wanted to see.
In my opinion the Q1 numbers can be decent, but there are potential pitfalls. I am not convinced that the street is ready for what will appear to be a low subscriber number. The number will be low because of the structure of the new GM deal. That dynamic started last quarter, but was essentially hidden in the full year sub numbers. This quarter will be the first real test of lower sub numbers being “front-and-center.