Sirius Sales In The Fast Lane – US-FOREX.US
Investors are hoping that Sirius XM Radio sales will hitch a ride from the U.S. auto sector, which is accelerating thanks to the U.S. government’s cash-for-clunkers program.Shares of Sirius XM Radio
have been climbing-up nearly 30% for the week-as automakers have been crediting the Car Allowance Rebate System for recent sales surges. Sirius shareholders have reason to cheer since most of the company’s new subscribers are new car owners who vouch to continue using satellite radio after the free trial period. In other words, the more cars sold with built-in satellite radio units, the more opportunities for Sirius to grow its subscriber base. When tightened credit conditions made it difficult for consumers to buy new cars, Sirius saw a major source of sales dry up and began looking for new ways to get to consumers. Sirius targeted Apple
iPhone users with a software download allowing for Sirius programming on the device, and programs can also be streamed over the Internet. The market is awaiting data on both new services to get an early read on how successful Sirius may be at developing an off-road audience. Unfortunately, promising trends are too recent to be meaningfully reflected in the company’s second-quarter results, which will be released on Thursday. Market expectations are for continued declines in subscription rates and weak sales. Analysts polled by Thomson Reuters are projecting a loss of 1 cent a share and sales of 607.8 million, which is based on three estimates. Sirius shares were trading 1.5% higher at 55 cents during afternoon trading on Wednesday.
Thomson Reuters contributed to this article.