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Market Overview

Earnings Outlook For Sirius XM Holdings

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On Tuesday, February 02, Sirius XM Holdings (NASDAQ:SIRI) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Based on Sirius XM Holdings management projections, analysts predict EPS of $0.02 on revenue of $2.07 billion. Sirius XM Holdings reported a profit of $0.05 per share when it published results during the same quarter last year. Sales in that period totaled $2.06 billion.

Why Analyst Estimates And Earnings Surprises Are Important

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 report earnings in line when it publishes results Tuesday, quarterly profit would be down 60.0%. Revenue would be up 0.39% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.05 0.06 0.05 0.05
EPS Actual 0.06 0.06 0.07 0.05
Revenue Estimate 1.94 B 1.89 B 1.93 B 2.03 B
Revenue Actual 2.02 B 1.87 B 1.95 B 2.06 B

Stock Performance

Over the past 52-week period, shares of Sirius XM Holdings have declined 13.38%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Sirius XM Holdings is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings