headerads

Sunday, October 28, 2012

Sirius XM Radio Inc (NASDAQ:SIRI)’s outlook to be keenly watched

Satellite services radio provider Sirius XM Radio Inc(NASDAQ:SIRI) is scheduled to report its third quarter earnings on October 30.

This will be the last earnings to be presided over by Chief Executive Mel Karmazin, who has already announced his intention of quitting the company in February next year.

Apart from numbers, analysts and investors will be expecting a lot of announcements from the company, which will soon be under the management control of Liberty Media, which has been raising its stake in the company through market purchases over several months.

In fact the Street is looking for some clarity on the deal with Liberty Media and its plans for the company, future guidance and also some idea about who the next CEO is likely to be.

Analysts expect earnings of about 2 cents a share from the company, almost on par with what it earned in the year-ago quarter. The company has had to pay off debts and do some refinancing activities which has impacted its bottomline in the last quarter.

According to an analysis done by Seeking Alpha the company is expected to record revenues of $865 million during the quarter and adjusting for expenses, to report an income of $110 million.

"As you can see, there is a substantial $110 million number associated with extinguishment of debt. The company paid off some notes and refinanced others. That activity will be accounted for in this quarter. In addition, the activity will impact cash," the analysis said.

However the focus this time around will be on the big picture and the way forward for the company and its prospects.

No comments:

Post a Comment


Privacy Policy | Legal Disclaimer