Back to top

Analyst Blog

In an effort to enhance its services, SIRIUS XM Radio Inc. (SIRI - Analyst Report) is offering the new Sync AppLink technology for Ford Motor Co.’s (F - Analyst Report) vehicles. The technology will allow users to use voice commands to listen to their favorite channels while driving.

The new software is also available on Apple Inc.’s (AAPL - Analyst Report) devices and Google Inc.’s Android-based handsets. Hence, customers can access SIRIUS XM programs from these devices without even turning on the satellite radio hardware.

Customers buying the new Ford vehicles will get six months of free subscription to SIRIUS XM’s On Demand and MySXM services. Ford Motors will be the first to use the new service.

SIRIUS XM declared mixed financial results for the first quarter of 2013. The company’s bottom line was in line with the Zacks Consensus Estimate, while the top line failed to meet the same.

During the quarter, the company added 452,890 (up 11.9% year over year) net subscribers, which raised the company’s total subscriber base to 24,353,226. The company also estimates 1.4 million net subscriber additions in fiscal 2013.

Hence, we believe that such value-added services coupled with increasing channel line-ups will not only drive subscriber growth but will also help the company to counter competition from other media players like Pioneer System and Pandora Media, Inc.

However, mounting debt, higher programming cost and sluggish economic growth will continue to act as headwinds for SIRIUS XM going forward.

Based in New York, SIRIUS XM provides satellite radio services in the U.S. and Canada.

Currently, SIRIUS XM has a Zacks Rank #3 (Hold).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%
NUSTAR GP H… NSH 41.14 +2.59%