Tuesday, August 7, 2012

2 Volume Buzzers: Sirius XM Radio & Chesapeake Energy Corporation (SIRI, CHK)

While the U.S. stocks ended higher for the third straight session on job optimism, following were the top two stocks, which showed unusual volume after reporting their quarterly earnings on Tuesday:-

Sirius XM Radio Inc(NASDAQ:SIRI) had once again solid session on Tuesday with the stock ended higher by 4.55% to $2.30 as the company boosted its full year earnings stating solid subscribers growth in the latest quarter. The company now projects to book adjusted EBIDTA at $900 million, up $25 million from its prior guidance of $875 million.

Can SIRI Move Back To its 52-week High of $2.41? Get Our Special Report

For the second quarter, the company said that it added 622,000 subscribers, which pushed its total subscribers count to a record level of 22.9 million. Speaking about key financials, Sirius XM earned $3.13 billion, or 48 cents a share on revenue of $837.5 million. In a year ago quarter, the company earned $179.4 million, or 3 cents.

After reaching its 52-week high of $2.41 in early April, the stock went to as low as $1.84 by mid May as the company’s insider sold million off shares. However, late May, the stock started to show relief rally and ever since it moved back above its 50-Day Moving Average and 200-Day Moving Average, the stock has been showing a smooth rally. Now, the stock may find resistance at $2.41.

Chesapeake Energy Corporation(NYSE:CHK) was another volume buzzer with the stock ended higher by 9.44% to $19.37 on massive volume of 41.75 million shares – twice its average volume. The company posted solid growth in its bottom line, which almost doubled in the second quarter thanks to the sale of a subsidiary and boosted revenue from oil, natural gas and natural gas liquids.

Is It The Right Time To Buy Shares of CHK? Get Free Trend Analysis

The company posted net income of $929 million, or $1.29 a share, up from a year ago profit of $467 million, or 68 a share. On an adjusted basis, the company would have earned 6 cents a share, missing analysts target by 2 cents. Revenue during the quarter came in at $3.39 billion, well above analysts’ forecast of $2.5 billion.

As the prices of natural gas slumped to a decade low, the company has been witnessing lower realization and hence in order to repay its scheduled debt, the company plans to sell up to $14 billion in assets this year to help reduce long-term debt.

Shares of the company had been under selling pressure earlier this year on debt concerns and slumping natural gas prices and a series of corporate governance issues. Shares of the company are still down over 13% year to date.

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