This Day On The Street
Continue to site
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

Sirius Misses the Mark

Sirius (SIRI - Get Report) dropped 9% after missing fourth-quarter estimates and trimming 2005 revenue guidance.

For its fourth quarter ended Dec. 31, the New York-based pay radio shop lost $262 million, or 21 cents a share, compared with the year-ago $148 million, or 14 cents a share. Revenue jumped to $25 million from $5 million a year ago.

Those numbers missed the Wall Street analyst consensus estimate, which called for a 16-cent-a-share loss on revenue of $28 million. The company also guided toward 2005 revenue of $210 million, which is below the $213 million Thomson First Call estimate.

But Sirius said it was adding subscribers faster than expected and rolled out a host of ambitious subscriber-addition targets. The user gains come as the company seeks to keep pace with its older and larger, if less media-savvy, rival, Washington-based XM Satellite (XMSR).

Sirius said it added 480,969 subscribers in the fourth quarter, giving it 1.14 million users at year-end. Previously, the company had targeted 1 million subscribers by year-end. Sirius also boosted its 2005 year-end user goal to 2.5 million from 2.3 million, saying it expects subscriber acquisition costs and churn to drop.

The report offers an interesting test of investor sentiment on Sirius, whose shares rocketed last year as the company signed up high-priced talent like Howard Stern and former Viacom exec Mel Karmazin. Fans say the company is on the verge of tapping a huge and lucrative mass market, but skeptics wonder how Sirius will fund its massive and ongoing losses in years ahead.

Early Wednesday, Sirius fell 54 cents to $5.70.

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
SIRI $3.73 0.00%
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs