Will Sirius XM's Subscription Growth Impress?

Quote: BOSTON (TheStreet Ratings) -- Sirius XM(SIRI) is scheduled to report quarterly earnings Tuesday, and analysts are expecting the satellite-radio provider to show improving subscription trends, driven by a rebound in auto sales.While Sirius faces mounting competitive pressures from free music providers such as PandoraP) and Spotify, subscription growth has continued to impress. Investors will be focused in on any slippage in growth or increased churn during the quarter.Analysts expect Sirius XM to report a gain of a penny a share in the second quarter, unchanged from last year. Revenue is estimated to increase to $753 million from $700 million a year ago, according to a poll of analysts by Thomson Reuters.TheStreet RatingsTheStreet that uses a quantitative model to evaluate stocks.Sirius XM reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Sirius turned its bottom line around by breaking even versus -15 cents in the prior year. This year, the market expects an increase in earnings to 5 cents from break even.We rate Sirius XM a hold. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company has not been very careful in the management of its balance sheet.Compared to its price level of one year ago, SIRI is up 108% to its most recent closing price of $2.08. Looking ahead, our view is tha...
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