Sirius XM (SIRI) Stock Closed Higher Following Headline News Channel Plan

NEW YORK (TheStreet) -- Shares of Sirius XM  (SIRI) closed up 0.13% to $3.82 on Thursday following the announcement of its partnership with Twenty-First Century Fox  (FOXA) to launch a new national headline news service and full-time satellite radio channel, Fox News Headlines 24/7, the companies said.

The channel will deliver "up-to the-minute headlines, breaking news, on-scene reporting, news from the world of business, entertainment, sports, and more," the companies stated.

The partnership is a multi-year agreement and the new channel will extend Fox News' reach on Sirius XM. 

In addition, the headlines channel will be produced by a team of Fox News journalists and contributors and is expected to launch in the fall of 2015 to all Sirius XM subscribers on channel 115, the companies noted.

On Thursday, shares of Twenty-First Century Fox closed down 0.06% to $32.96.

Separately, TheStreet Ratings team rates SIRIUS XM HOLDINGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SIRIUS XM HOLDINGS INC (SIRI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • SIRI's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, SIRIUS XM HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 12.4% when compared to the same quarter one year prior, going from $93.99 million to $105.69 million.
  • Net operating cash flow has increased to $310.03 million or 23.32% when compared to the same quarter last year. In addition, SIRIUS XM HOLDINGS INC has also modestly surpassed the industry average cash flow growth rate of 15.14%.
  • SIRIUS XM HOLDINGS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SIRIUS XM HOLDINGS INC increased its bottom line by earning $0.09 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($0.11 versus $0.09).
  • You can view the full analysis from the report here: SIRI Ratings Report

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