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Sirius XM Holdings Earnings Preview

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Sirius XM Holdings (NASDAQ: SIRI) releases its next round of earnings this Thursday, October 22. Here is Benzinga's essential guide to Sirius XM Holdings's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings, also known as net income, is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Sirius XM Holdings modeled for quarterly EPS of $0.05 on revenue of $1.94 billion. In the same quarter last year, Sirius XM Holdings reported EPS of $0.05 on revenue of $2.01 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 0%. Sales would be down 3.53% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.06 0.05 0.05 0.06
EPS Actual 0.06 0.07 0.05 0.05
Revenue Estimate 1.89 B 1.93 B 2.03 B 1.98 B
Revenue Actual 1.87 B 1.95 B 2.06 B 2.01 B

Stock Performance

Shares of Sirius XM Holdings were trading at $5.8 as of October 20. Over the last 52-week period, shares are down 9.44%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

 

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