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SIRIUS XM (SIRI) Tops Q3 EPS by 2c, On Rise in Revenues

November 5, 2009 7:12 AM EST
SIRI Hot Sheet
Revenue Growth %: +11.2%

Financial Fact:
Income tax expense: -2.8M

Today's EPS Names:
IXYS, TARO, PAY, More
SIRIUS XM Radio Inc. (Nasdaq: SIRI) reports Q3 EPS of breakeven, ex-items, 2 cents better than the consensus of a $0.02 loss. Revenues rose 3% to $630 million, above the consensus of $608.7 million.

SIRI announces net subscriber additions of over 100,000.

"We are very pleased with what we accomplished during the third quarter, especially when considering the macroeconomic issues affecting consumers and the auto industry," said Mel Karmazin, SIRIUS XM's CEO. "We managed to grow revenue, grow ARPU, reduce operating costs, increase adjusted income from operations significantly, and refinance higher cost debt. We look forward to continuing this performance. We grew subscribers and improved churn in the quarter, and we are well positioned to take advantage of an economic rebound. We expect to grow subscribers, revenue, and cash flow next year regardless of the magnitude of any recovery."

SIRIUS XM affirmed its year 2009 guidance of over $400 million in pro forma full-year adjusted income from operations.

The company also provided guidance for 2010. "We expect the company's cash flow growth momentum to continue into 2010, and we project full-year adjusted income from operations to increase approximately 20% next year," said Mr. Karmazin. Based upon assumed 2010 automobile sales of 11.3 million units, SIRIUS XM expects to achieve positive full-year subscriber growth in 2010. The company also expects 2010 revenue growth of mid- to high-single digits, and growth in free cash flow compared to 2009.

UPDATE: Click here to see some highlights from Sirius' Q3 conference call.

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