XM, Sirius Still Have Much to Prove

The delayed merger between satellite radio operators Sirius (SIRI Quote) and XM Satellite Radio (XMSR Quote) may be the least of their problems, as concerns over subscriber adds, rising churn rates and lower revenue per subscriber are leaving analysts cautious heading into their first-quarter numbers.

Analysts currently expect Washington, D.C.-based XM, which is set to release its results on Thursday, to post a loss of 39 cents a share, according to a Thomson First Call survey. New York-based Sirius should lose 7 cents a share, if Wall Street is correct, when it reports on April 29. Since the last reporting quarter's results in late February, shares of Sirius and XM have fallen more than 15%.

The merger partners have chosen not to provide guidance for 2008 amid uncertainty over a forthcoming ruling from the Federal Communications Commission, making it increasingly difficult for analysts to get a handle on each company's performance. ...