Sirius Satellite Radio Earnings Preview Q1 2007 (SIRI, XMSR)

Sirius Satellite Radio (SIRI-NASDAQ) is expected to post results of -$0.11 EPS and revenues of $211.7 million.  Losses and negative cash flows are already assumed, so the focus is almost certainly going to be around 2007-end subscribers and if Mel Karmazin is able to convey that the merger will ultimately close.

Competitor and hopeful merger partner XM Satellite Radio (XMSR) rallied last week when it gave forcasts of 9.0 to 9.2 million subscribers.  Here was what Standard & Poor’s just said on both companies last week.  We also had a decent analyst call defending the shares just last week as well out of UBS.  UBS is looking for net subscriber adds of 485,000 for Q1 2007.

Both XM and Sirius shares are trading up since XM made its earnings report.  Sirius now has a 52-week trading range of $2.72 to $5.01, and the stock is still closer to the lows from the end of 2004.

Jon C. Ogg
April 30, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.