by Dennis “Cos” Costa
Free Real Time Stock Ticker
source: satelliteradioplayground.com
On Wednesday, August 4th 2010 at 8:00 a.m. ET, Sirius XM Radio (NASDAQ:SIRI) will be conducting a conference call to discuss the company’s second quarter 2010 financial and operating results. Investors and analysts have been waiting for this call with much anticipation since the company preannounced on July 7th that they had added over 583K net subscribers in the second quarter. In the same press release, the company raised its guidance for full-year 2010 to more than 1.1M subscribers, while maintaining its guidance to achieve over $100M in free cash flow.
This news of such a large addition in subscribers was achieved with only modest, but stable, vehicle sales being reported in the same quarter. It also was announced after the company had already raised subscriber guidance on May 17th to over 750K, from 500K for the full year. It goes without saying that all eyes will be focused on how the company was able to achieve such dramatic numbers in a relatively flat vehicle sales environment. It will also be of interest to hear what impact these additional subscribers will have on important company metrics in both the short and longer term.
While these subscriber growth numbers appear positive, the company’s stock price is hovering around $1.oo per share and it’s a “banner” for investor confusion at this price. After almost a year of debate and concern over the company maintaining its listing on NASDAQ, having hundreds of pages written debating the pros and cons of a reverse split, surviving two of the company’s automotive partners washing through bankruptcy, and Sirus XM regaining entry into the Russell indexes, the company’s equity continues to frustrate investors. It turns out that all of these regulatory, indexing, and partner uncertainties, have had little to do with the equity price appreciation over the past months.
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