We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Rising Costs Hurt SIRIUS XM (SIRI) in Q3 Earnings?
Read MoreHide Full Article
Sirius XM Holdings (SIRI - Free Report) is scheduled to report third-quarter 2017 results on Oct 25, before the market opens.
Last quarter, the company’s earnings were in line with the Zacks Consensus Estimate, while revenues beat the same. Both earnings and revenues improved on a year-over-year basis.
Let’s see how things shape up for this announcement.
Factors Likely at Play
Sirius XM’s bottom line in the third quarter is likely to be affected by a spike in costs. Also, the company completed the $480 million Pandora investment in the third quarter. This is likely to further pressurize the bottom line.
The slowdown in subscription growth may also hurt results in the third quarter. The company added 0.70 million subscriptions in the first half of 2017, significantly below the number, added a year ago.
The company’s high-debt levels are another cause for concern. Increased leverage coupled with stiff competition from rivals may also act as headwinds for the company in the third quarter.
However, the company’s efforts to reward shareholders with dividends and buybacks are impressive.
Earnings Whispers
Our proven model shows that Las Vegas Sands has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat in the third quarter. However, that is not the case as highlighted below.
Zacks ESP: Sirius XM has an Earnings ESP of +3.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though the company’s positive ESP increases confidence about an earnings surprise, its Zacks Rank #4 (Sell) leaves surprise prediction inconclusive.
Hence, we caution against all Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Investors interested in the broader Consumer Discretionary sector may consider the following stocks with the right combination of elements to surpass estimates this quarter:
Discovery Communications, Inc. has an Earnings ESP of +0.61% with a Zacks Rank #3. The company will report third-quarter earnings on Nov 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Will Rising Costs Hurt SIRIUS XM (SIRI) in Q3 Earnings?
Sirius XM Holdings (SIRI - Free Report) is scheduled to report third-quarter 2017 results on Oct 25, before the market opens.
Last quarter, the company’s earnings were in line with the Zacks Consensus Estimate, while revenues beat the same. Both earnings and revenues improved on a year-over-year basis.
Let’s see how things shape up for this announcement.
Factors Likely at Play
Sirius XM’s bottom line in the third quarter is likely to be affected by a spike in costs. Also, the company completed the $480 million Pandora investment in the third quarter. This is likely to further pressurize the bottom line.
The slowdown in subscription growth may also hurt results in the third quarter. The company added 0.70 million subscriptions in the first half of 2017, significantly below the number, added a year ago.
The company’s high-debt levels are another cause for concern. Increased leverage coupled with stiff competition from rivals may also act as headwinds for the company in the third quarter.
However, the company’s efforts to reward shareholders with dividends and buybacks are impressive.
Earnings Whispers
Our proven model shows that Las Vegas Sands has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat in the third quarter. However, that is not the case as highlighted below.
Zacks ESP: Sirius XM has an Earnings ESP of +3.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though the company’s positive ESP increases confidence about an earnings surprise, its Zacks Rank #4 (Sell) leaves surprise prediction inconclusive.
Hence, we caution against all Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Sirius XM Holdings Inc. Price and EPS Surprise
Sirius XM Holdings Inc. Price and EPS Surprise | Sirius XM Holdings Inc. Quote
Stocks to Consider
Investors interested in the broader Consumer Discretionary sector may consider the following stocks with the right combination of elements to surpass estimates this quarter:
Discovery Communications, Inc. has an Earnings ESP of +0.61% with a Zacks Rank #3. The company will report third-quarter earnings on Nov 2.
DISH Network Corporation has an Earnings ESP of +1.40% with a Zacks Rank of 3 as well. The company is expected to report third-quarter earnings on Nov 8. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>