NEW YORK (TheStreet) -- Love for Pandora (P - Get Report) has SiriusXM (SIRI - Get Report) investors feeling amorous on Friday, after the former exploded 7.5% to $31.68. The Internet radio streaming service was pushed higher after JPMorgan voiced its support for Pandora, reiterating an "overweight" rating and raising its price target to $35 from $25.
Sirius, meanwhile, gained 3.3% to $3.86, sharing increased investor appetite in the Internet radio space.
Possibly influencing share movements was JPMorgan's prediction that Pandora's advertising revenue growth would accelerate 51% year over year in 2014. If more advertisers are seeing the value in Internet radio slots, Sirius will likely see spillover.
- The revenue growth came in higher than the industry average of 8.1%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- Net operating cash flow has increased to $302.24 million or 37.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 7.90%.
- The gross profit margin for Sirius XM Radio Inc is rather high; currently it is at 65.01%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.54% trails the industry average.
- Compared to its closing price of one year ago, SIRI's share price has jumped by 31.38%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- Sirius XM Radio Inc reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, Sirius XM Radio Inc increased its bottom line by earning 53 cents a share vs. 7 cents a share in the prior year. For the next year, the market is expecting a contraction of 86.8% in earnings (7 cents vs. 53 cents).
- You can view the full analysis from the report here: SIRI Ratings Report
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