Sirius
XM Radio Inc(NASDAQ:SIRI) has raised its guidance for a
subscriber gain of 1.8 million in 2012, up from its earlier prediction of a
profit of 1.6 million.
It has also stated that
it has added about 446,000 subscribers in the September quarter, finishing the
period with a record of 23.4 million.
Mel Karmazin, the CEO
said that the additions signify the best September quarter since Sirius and XM
had merged in the July of 2008.
The firm is believed to
have added 1.5 million subscribers in total so far in the year 2012. In the
first 6 months, about 87% of revenues of Sirius XM came from subscriptions.
Shares of SIRI hit a
new high of $2.76 in Wednesday’s session and closed at $2.75, up 4.56%.
In another news, shares
of Monster Beverage Corp(NASDAQ:MNST)
dropped on Wednesday after Stifel Nicolaus had reduced his rating on the energy
drink maker, quoting the slow sales growth and the regulatory risks that are
involved.
After years of growth,
Monster seems to be facing a tough year, as Mark Astrachan, an analyst has
noted. He has also observed that the regulatory risks remain for the firm,
under the conditions that the New York’s state attorney general is probing into
the marketing practices of Monster Beverages and several other energy drink
makers.
Astrakhan has lowered
his rating on the firm from ‘buy’ to ‘hold’.
However, he expects the
firm to achieve sales growth in the mid-teens through 2015, as the energy drink
industry continues to grow in the US and abroad.
Energy drinks continue
to b e a tiny [art of the carbonated soft drinks industry. It represents just
3% of total sales volume, as per the industry tracker Beverage Digest. However,
while soda consumption has flagged in recent times, energy drinks seem to have
taken flight.
Monster Beverages
stocks dropped $3.11 to $53.63.
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