Yahoo Finance Sirius XM (SIRI) to Report Q1 Earnings: What's in Store?
Sirius XM SIRI is set to report first-quarter 2024 earnings on Apr 30.
The Zacks Consensus Estimate for first-quarter earnings has remained constant at 6 cents per share in the past 30 days. The figure has remained unchanged from the year-ago quarter’s reported number.
The consensus mark for revenues is pegged at $2.13 billion, indicating a 0.47% decrease from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 10.27%.
Let’s see how things have shaped up for this announcement.
Sirius XM Holdings Inc. Price and EPS Surprise
Sirius XM Holdings Inc. price-eps-surprise | Sirius XM Holdings Inc. Quote
Factors to Consider
Sirius XM’s first-quarter subscriber revenues are expected to have suffered despite an expanding content catalog of live sporting events and a solid portfolio of streaming services, including Super Bowl LVIII, DAYTONA 500, NBA All-Star and MLB.
SIRI’s subscriber revenues in the fourth quarter declined 0.3% from the year-ago quarter to $1.72 billion. This trend is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for the company’s subscriber revenues is pegged at $1.66 billion, indicating a decline of 1.77% year over year.
In the fourth quarter, Sirius XM’s subsidiary, AdsWizz, made Synthetic Voice Ads available on its self-serve platform, AudioGO, for small and mid-sized businesses. This is likely to have aided advertisement revenues in the to-be-reported quarter.
Advertisement revenues in the fourth quarter declined 0.2% year over year to $479 million. The Zacks Consensus Estimate for SIRI’s first-quarter advertisement revenues is pegged at $386.02 million, indicating a rise of 2.9% year over year.
Sirius XM continues to bolster its content offerings by adding content from all spheres, including music, politics, news and sports, to its platform. The company provided extensive coverage of 41 college football bowl games, including ESPN’s radio coverage of the College Football Playoff Semifinals and National Championship.
The company has been witnessing softness in ad revenues for a long time now. This is expected to have negatively impacted top-line growth in the to-be-reported quarter.
SIRI faces intense competition in the streaming space from the likes of Apple AAPL and Spotify SPOT, which is expected to hurt the top line in the near term. Apple continues to bolster its presence in the music streaming space backed by acquisitions of Shazam and Asaii. Spotify, the dominant name in the market, is also ramping up its efforts to expand its subscriber base on the back of partnerships with other tech giants.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
SIRI has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stock to Consider
Here is a stock worth considering, as our model shows that it has the right combination of elements to beat on earnings this season.
APi Group APG has an Earnings ESP of +2.06% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG’s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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