XM Satellite Earnings Less Monitored Than Merger Hopes (XMSR, SIRI)

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By Douglas A. McIntyre Published
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XM Satellite Radio just posted earnings of a net loss of $239 million on a 20% rise in revenues to $308 million.  The net loss on an EPS basis was -$0.78 EPS, but that included $0.25 for certain merger and settlement related charges.  If we back that out we would get a -$0.53 EPS.  First Call was looking for -$0.63 EPS on $303.1 million in revenues, so this was a narrower loss on slightly better revenues.

XM Surpassed 9 Million total subscribers in 2007 and XM-equipped new car production rose 64% in 2007.  1.4 million of the total net subscriber adds came in the quarter out of the 3.5 million adds for 2007.

As a reminder, Sirius Satellite Radio (NASDAQ: SIRI) said it would provide guidance "after it secures merger approval" earlier this week.

XMSR shares are up almost 1.5% at $12.62 in early pre-market trading, and the 52-week trading range is $9.62 to $16.44.  This one looks like it too is not trading on its earnings.  All eyes are looking for merger approval news. 

Jon C. Ogg
February 28, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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