Sirius XM Radio Inc (NASDAQ:SIRI) has been upgraded to outperform rating after the Company’s reaffirmation of its FY 2012 revenues and raising of its FY 2012 EBITDA estimate.
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The broadcasting service provider has been reporting solid net subscribers’ addition since the last two quarters that can be linked to this year’s high auto sales. Recently, the management declared that SIRIUS XM added 622,042 net subscribers at the end of the second quarter which is a growth of 37.6% yoy. The Company ended the last quarter with a record high total subscriber base of more than 22.9 million on the backdrop of increasing prices for its services.
Sirius broadcasts on a subscription fee basis through its two satellite radio systems. As the number of vehicle sale have increased in the first half of the year and the estimated vehicle sales being on the upside, Sirius’s subscriber base is expected to maintain the growth.
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The Company reports its second quarter results on August 7, 2012 and had guided for increase in its subscriber base to increase by 1.6 million as compared to the previous guidance of 1.5 billion subscribers. Similarly, the revenue guidance for fiscal 2012 has been raised to $3.4 billion from its earlier guidance of $3.3 billion.
SIRI is up 12% in the last one month and ended the week at $2.10 after trading hands on high volume of 44.16 million shares. Its 52-week trading range is $1.27-$2.41.