Sirius XM (SIRI) May Benefit as Dec. Auto Sales Trend Higher

December 19, 2012 9:22 AM EST Send to a Friend
Sirius XM (Nasdaq: SIRI) is up early Wednesday following an announcement that the satellite radio provider scrounged up a replacement for outgoing Mel Karmazin in Jim Meyer. (Click here for more color.)

But, investors might also be getting some confidence from another outlet: auto sales.

According to a recent survey at Edmunds.com, sales for some key automakers are expected to show improvement in December. Edmunds' Jeremy Anwyl sees names like Ford (NYSE: F), General Motors (NYSE: GM), BMW, and Toyota (NYSE: TM) all reporting positive outcomes for the month. Ford should rise 2 percent, GM will see an 11 percent pop, and Toyota should see gains of 3 percent.

The current sales pace has 1.12 million units being sold in the U.S. during December, from 965,000 in November. Assuming a fleet mix of 18 percent and sales move up to 1.36 million, from 1.14 million in November. SAAR should be about flat at

Despite lagging expectations at Chrysler, Honda (NYSE: HMC), Kia, and others, Anwyl notes that about 40 percent of sales will happen within the last eight days of the month.

Given that Sirius has its wares in most of the makes, any gain in sales will add a little boost to the company's sales and profits.

Shares of Sirius are flat in early trading.


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