SiriusXM To Announce Q1 Results
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.
Spencer,
Let us call a spade a spade. Which sub number is goung to be low: net or self-pay or both?
If the SIRI management doesnt pre-announce any numbers before the Conference call, the conference call is usually bad. That what i noticed in last 10 years as SIRI investor. Also, If the call falls on Tuesday it is good, if it falls on Thursday it ia bad. It is a code to other investors on how the call is going to be.
Fuzzy,
This time I do not want them to pre-announce because I want them to buy back as cheaply as possible. You would probably agree that if the numbers are good the share price would appreciate. Not now. I wish they could buy back as many as 200M shares before the announcement, not counting liberty’s. I know it is a tall order but they should do everything they can to buy back as much as possible.
I still hope AT&T buys off the shares Liberty invested in SIRI and rest of SIRI outstanding shares for $5.50. It will be win win for both AT&T and SIRI. AT&T will have SIRI spectrum, Telematics and SATRAD Radio monopoly. Customers will have one bill. I do think this will happen in the future.
Fuzzy,
I have never heard of AT&T’s interest in sirius. Even if there is, I see very little synergy between the two. Also, I doubt liberty will sell its fat goose laying gold eggs for $5.50 unless they need money right now and are willing to pay taxes. Let us wait till Q1 announcement and see the results.
A more probable secnario is an RMT sooner than later most likely in 2016. In the meantime, we may see a good dividend this year. Liberty should be pissed at us for its failure to grab siri for a song and will punish us by paying itself a dividend…and us as well:)