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Can Sirius XM (SIRI) Pull a Surprise this Earnings Season?
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Sirius XM Holdings (SIRI - Free Report) is scheduled to report second-quarter 2016 results on Jul 26, before market opens.
The company has not been able to beat the Zacks Consensus Estimate in any of the last four quarters. However it has delivered in line earnings in each of the last four quarters. Meanwhile, we eagerly await the quarterly release to see how the company performs this time around.
Factors at Play
Sirius XM is expected to gain from growth in subscriber count, which is likely to increase by 1.6 million in 2016. Additionally, strong advertising revenues and strategic partnerships with major car manufacturers are expected to boost growth.
However, the company operated in a challenging environment and faces stiff competition from the likes of Pioneer Systems and Apple Inc. (AAPL - Free Report) at different fronts. The company’s high level of dependence on auto firms also raises caution. Further, its debt-laden balance sheet is a cause of concern for investors.
Our proven model does not conclusively show that Sirius XM is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for the company currently stands at 0.00%. This is because both the Most Accurate estimate and Zacks Consensus Estimate are pegged at 4 cents.
Zacks Rank: Sirius XM carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Starz has an earnings ESP of +8.93% and a Zacks Rank #2.
CBS Corp has an earnings ESP of +1.16% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Can Sirius XM (SIRI) Pull a Surprise this Earnings Season?
Sirius XM Holdings (SIRI - Free Report) is scheduled to report second-quarter 2016 results on Jul 26, before market opens.
The company has not been able to beat the Zacks Consensus Estimate in any of the last four quarters. However it has delivered in line earnings in each of the last four quarters. Meanwhile, we eagerly await the quarterly release to see how the company performs this time around.
Factors at Play
Sirius XM is expected to gain from growth in subscriber count, which is likely to increase by 1.6 million in 2016. Additionally, strong advertising revenues and strategic partnerships with major car manufacturers are expected to boost growth.
However, the company operated in a challenging environment and faces stiff competition from the likes of Pioneer Systems and Apple Inc. (AAPL - Free Report) at different fronts. The company’s high level of dependence on auto firms also raises caution. Further, its debt-laden balance sheet is a cause of concern for investors.
SIRIUS XM HLDGS Price and EPS Surprise
SIRIUS XM HLDGS Price and EPS Surprise | SIRIUS XM HLDGS Quote
Earnings Whispers
Our proven model does not conclusively show that Sirius XM is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for the company currently stands at 0.00%. This is because both the Most Accurate estimate and Zacks Consensus Estimate are pegged at 4 cents.
Zacks Rank: Sirius XM carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Please note that we caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Starz has an earnings ESP of +8.93% and a Zacks Rank #2.
CBS Corp has an earnings ESP of +1.16% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>