More Raised Guidance for SIRIUS XM Ahead of Shareholder Fight
Oct 10th 2012 1:36PM
SIRIUS XM Radio Inc. (NASDAQ: SIRI) must have thought that they needed to get subscriber data out before its earnings report. The satellite radio leader just release a report showing that its net subscriber additions were 445,921 in the September quarter. That put the total period subscribers at 23,365,383 and that is yet another record.
What investors may care more about than what happened then is what it expects ahead. Mel Karmazin said raised the company's net subscriber guidance up higher to some 1.8 million net new subscribers for 2012. That is some 200,000 higher than its prior 1.6 million net subscribers targeted. Karmazin said, "With almost 1.5 million net subscribers already added in 2012 and continuing growth in auto sales, we will significantly exceed our previous guidance of 1.6 million, marking our third increase in subscriber guidance this year and putting us on track for record post-merger net additions."
Mel Karmazin also said that this 34% gain over last year's third quarter was a record third quarter in new additions since SIRIUS and XM Radio merged.
SIRIUS XM Radio shares are up 2.3% at $2.69 on the day and shares hit a new multi-year high of $2.75 today. We would note that BofA recently became very aggressive when it issued a
JON C. OGG