Sirius XM Holdings (SIRI - Free Report) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens.
The company missed the Zacks Consensus Estimate in all of the last four quarters. In fact, the company posted a negative earnings estimates of 25% in the last quarter. We wait to see how the company performs this quarter.
Factors at Play
Sirius XM is expected to gain from the growth in net subscriber base. The company expects this figure to increase by 1.6 million in 2016. Moreover, we expect the company’s top line to be benefited by strategic collaborations. The company’s strong telematics partnerships with almost all major car manufacturers deserve special mention in this regard.
However, the company’s high debt levels raises concerns. Increasing competition from peers like Cumulus Media, Inc. (CMLS - Free Report) and Entravision Communications (EVC - Free Report) is another headwind.
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 each.
Zacks Rank: Sirius XM a Zacks Rank #2 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.
Stock to Consider
Here is a company you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter:
Nexstar Broadcasting Group (NXST - Free Report) , which is scheduled to report third-quarter earnings on Nov 8, has an Earnings ESP of +12.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Sirius XM Holdings (SIRI - Free Report) is scheduled to report third-quarter 2016 results on Oct 27, before the market opens.
The company missed the Zacks Consensus Estimate in all of the last four quarters. In fact, the company posted a negative earnings estimates of 25% in the last quarter. We wait to see how the company performs this quarter.
Factors at Play
Sirius XM is expected to gain from the growth in net subscriber base. The company expects this figure to increase by 1.6 million in 2016. Moreover, we expect the company’s top line to be benefited by strategic collaborations. The company’s strong telematics partnerships with almost all major car manufacturers deserve special mention in this regard.
However, the company’s high debt levels raises concerns. Increasing competition from peers like Cumulus Media, Inc. (CMLS - Free Report) and Entravision Communications (EVC - Free Report) is another headwind.
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 each.
Zacks Rank: Sirius XM a Zacks Rank #2 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.
Stock to Consider
Here is a company you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter:
Nexstar Broadcasting Group (NXST - Free Report) , which is scheduled to report third-quarter earnings on Nov 8, has an Earnings ESP of +12.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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