Showing posts with label sirius canada. Show all posts
Showing posts with label sirius canada. Show all posts
Is Sirius XM Worth $2.50?
0 comments Wednesday, 4 May 2011Wall Street continues to draw new lines in the sand when it comes to Sirius XM Radio (Nasdaq: SIRI ) . Standard & Poor's analyst Tuna Amobi is the latest to revise his price target on the satellite radio giant higher. He is sticking to his buy rating, but bumping his near-term price goal from $2 to $2.50.
This isn't pocket change. Sirius XM has 6.5 billion shares outstanding now that Liberty Capital's (Nasdaq: LCAPA ) 40% preferred share stake is in the profitable mix. Amobi's arguing that the company is worth $3.25 billion more than he thought before yesterday's conference call.
CEO Mel Karmazin's dangling the likelihood of an upcoming subscription rate increase was enough to send shares off to a fresh two-year high yesterday. Given the largely fixed overhead at Sirius XM, any additional subscription revenue will be like a Twinkie to a dieting worrywart -- it'll go right to the bottom. Sirius XM has enough in tax loss carryforwards to offset years of pretax profits. If Sirius is able to squeeze another $2 a month out of every subscriber, we're talking about nearly $500 million given its current base of 20.6 million accounts.
Testing its pricing elasticity naturally has its risks.
There are two arguments to consider. On the bearish side, there were nearly 6.4 million Sirius XM cancellations last year. A service can't be too cocky when nearly a third of its base deactivates their receivers in any given year.
This isn't pocket change. Sirius XM has 6.5 billion shares outstanding now that Liberty Capital's (Nasdaq: LCAPA ) 40% preferred share stake is in the profitable mix. Amobi's arguing that the company is worth $3.25 billion more than he thought before yesterday's conference call.
CEO Mel Karmazin's dangling the likelihood of an upcoming subscription rate increase was enough to send shares off to a fresh two-year high yesterday. Given the largely fixed overhead at Sirius XM, any additional subscription revenue will be like a Twinkie to a dieting worrywart -- it'll go right to the bottom. Sirius XM has enough in tax loss carryforwards to offset years of pretax profits. If Sirius is able to squeeze another $2 a month out of every subscriber, we're talking about nearly $500 million given its current base of 20.6 million accounts.
Testing its pricing elasticity naturally has its risks.
There are two arguments to consider. On the bearish side, there were nearly 6.4 million Sirius XM cancellations last year. A service can't be too cocky when nearly a third of its base deactivates their receivers in any given year.
The Zacks Analyst Blog Highlights: SIRIUS XM Radio, Comcast, Fiat SpA, General Motors and Ford Motor
0 commentsSIRIUS XM Radio Inc. (SIRI - Analyst Report) declared its financial results for the first quarter of 2011 that barely met the Zacks Consensus Estimates. Quarterly GAAP net income was $78.1 million or 1 cent per share compared with a net income of $41.6 million or 1 cent per share in the prior-year quarter. First quarter EPS of 1 cent was exactly in line with the Zacks Consensus Estimate.
Quarterly total revenue of $723.8 million was an improvement of 9% year over year, and slightly below the Zacks Consensus Estimate of $726 million. The year-over-year revenue growth was primarily attributable to an increase in the subscriber base, higher sale of "Best of" programming, and rate increases to the company's multi-subscription and Internet packages.
Quarterly total operating expenses were $559.7 million compared with $538.6 million in the year-ago quarter. Operating income, in the first quarter of 2011, was $164.2 million compared with an operating income of $125.1 million in the year-ago quarter. Quarterly adjusted EBITDA was $181.4 million compared with $157.8 million in the prior-year quarter.
During the first quarter of 2011, SIRIUS XM generated $18.1 million of cash from operations compared with a cash consumption of $37.7 million in the prior-year quarter. Free cash flow (cash flow from operations less capital expenditures) in the reported quarter was a negative $16.8 million compared with a negative $127.2 million in the year-ago quarter.
At the end of the first quarter of 2011, SIRIUS XM had $433.7 million cash and cash equivalents and $2,766.8 million of outstanding debt compared with $586.7 million cash and cash equivalents and $2,891.7 million of outstanding debt at the end of fiscal 2010. At the end of the reported quarter, debt-to-capitalization ratio was 0.90 compared with 0.93 at the end of fiscal 2010.
Quarterly total revenue of $723.8 million was an improvement of 9% year over year, and slightly below the Zacks Consensus Estimate of $726 million. The year-over-year revenue growth was primarily attributable to an increase in the subscriber base, higher sale of "Best of" programming, and rate increases to the company's multi-subscription and Internet packages.
Quarterly total operating expenses were $559.7 million compared with $538.6 million in the year-ago quarter. Operating income, in the first quarter of 2011, was $164.2 million compared with an operating income of $125.1 million in the year-ago quarter. Quarterly adjusted EBITDA was $181.4 million compared with $157.8 million in the prior-year quarter.
During the first quarter of 2011, SIRIUS XM generated $18.1 million of cash from operations compared with a cash consumption of $37.7 million in the prior-year quarter. Free cash flow (cash flow from operations less capital expenditures) in the reported quarter was a negative $16.8 million compared with a negative $127.2 million in the year-ago quarter.
At the end of the first quarter of 2011, SIRIUS XM had $433.7 million cash and cash equivalents and $2,766.8 million of outstanding debt compared with $586.7 million cash and cash equivalents and $2,891.7 million of outstanding debt at the end of fiscal 2010. At the end of the reported quarter, debt-to-capitalization ratio was 0.90 compared with 0.93 at the end of fiscal 2010.
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