Sirius XM (SIRI) Beats Q2 Views; Says China, Europe Issues Not Affecting Growth; Hits Record Sub Numbers (P)

August 7, 2012 9:23 AM EDT
Sirius XM Radio (Nasdaq: SIRI) shares are comfortably higher on the session Tuesday following strong second quarter 2012 results, as solid auto sales pushed its sub base to a record high of 22.9 million and self-pay subs to 18.7 million.

Churn and new vehicle conversion rate were flat at 1.9 percent and 45 percent, respectively.

On the company's conference call, CEO Mel Karmazin had a few positive comments, saying (not verbatim):
  • Paid subs run-rate heading for 23.5 million by the end of 2012;
  • Net sub adds moving toward 1.6 million;
  • Only possibly uncertainty is from the macro climate;
  • CapEx should remain low;
  • Operations not affected by China, European slowdown; and
  • There's no reason Sirius shouldn't see growth for years to come.
Revs are expected to approach $3.4 billion, which is just ahead of consensus views calling for $3.38 billion in revs.

Ahead of the bell, Sirius is up nearly 2 percent. Traders will likely keep an eye on Pandora Media (NYSE: P), which is trading up 2.7 percent in the early session.

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