Can Sirius XM (SIRI) Spring A Surprise In Q2 Earnings?
Zacks Investment Research | Jul 24, 2017 10:08PM ET
Sirius XM Holdings (NASDAQ:SIRI) is scheduled to report second-quarter 2017 results on Jul 27 before the market opens.
Last quarter, the company’s earnings were in line with the Zacks Consensus Estimate while revenues missed the same. However, both earnings and revenues improved on a year-over- year basis.
Let’s see how things shape up for this announcement.
Factors Likely at Play
Sirius XM might struggle in the second quarter of 2017 due to high debt levels. Increased leverage coupled with stiff competition from its rivals will also act as headwinds for the company this quarter.
However, the company’s healthy net subscriber growth is encouraging which might drive its second-quarter results.
The company’s efforts to expand its product portfolio also raise optimism. In April, the company acquired Automatic Labs, a provider of connected vehicle services for consumers and enterprises based in San Francisco. Also in June, the company announced plans to make a $480 million investment in Pandora (NYSE:P) .
The company’s efforts to reward shareholders are also appreciative. In April, the company’s board declared a quarterly cash dividend of a one cent per share.
Earnings Whispers
Our quantitative model does not conclusively show that Sirius XM is likely to beat on earnings this quarter. A company needs the right combination of two key ingredients – a positive Earnings ESP Filter .
Zacks Rank: Sirius XM carries a Zacks Rank #2 (Buy). However, the company’s 0.00% ESP complicates our surprise prediction.
Note that the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Sirius XM Holdings Inc. Price and EPS Surprise
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