This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Sirius Drowns Out Deal Noise

Merger buzz and a strong subscriber-growth forecast helped keep investors from focusing too keenly on Sirius' (SIRI - Get Report) widening losses.

But the big earnings miss did help knock the New York satellite radio shop's stock down 17 cents, or 3%, to $6.07 in midday trading Wednesday.

Sirius posted a disappointing net loss of $262 million, or 21 cents a share, compared with the year-ago loss of $148 million, or 14 cents a share. The fourth-quarter losses were far wider than the 16 cents a share analysts had expected.

Looking ahead, Sirius said losses would increase from 2004 levels and revenue for the year would fall below expectations. Sirius says its adjusted net loss will grow to $480 million at the end of 2005 from $456 million last year. And despite raising its 2005 subscriber target to 2.5 million from 2.3 million previously, Sirius cut revenue projections to $210 million, below the $213 million analysts expected.

Sirius has become one of the most actively traded stocks on the Nasdaq as investors debate the merits of the company's potentially massive consumer appeal with the risks of steep losses and the constant need for more cash.

On the merger front, Sirius CEO Mel Karmazin was asked on a conference call about a report Wednesday in the New York Post of a possible tie-up between Sirius and rival XM (XMSR). Karmazin said it was the third such rumor he'd heard in his eight weeks on the job.

Though Karmazin didn't formally deny the report, he made it clear he wasn't personally involved in any high-level discussions. Never mentioning XM by name, Karmazin said: "I have not met with the chairman and I have not met with the CEO, so I have no idea where any of this came from."

Observers say a merger of the only two satellite radio players could help cut operating costs by eliminating competitive bidding on programming contracts. But from a technology, regulatory or even a valuation perspective, industry watchers say the pairing seems unlikely.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
SIRI $3.89 0.00%
VIAB $69.94 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs