Golf Clap for SIRIUS XM Radio

SIRIUS XM Radio (NAS: SIRI) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), SIRIUS XM Radio met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins expanded, net margins contracted.

Revenue details
SIRIUS XM Radio chalked up revenue of $941.9 million. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $937.1 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $837.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.02. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS of $0.02 for Q2 were 96% lower than the prior-year quarter's $0.48 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 57.5%, 690 basis points better than the prior-year quarter. Operating margin was 28.5%, 130 basis points better than the prior-year quarter. Net margin was 13.4%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $966.2 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $3.79 billion. The average EPS estimate is $0.09.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 4,589 members out of 5,567 rating the stock outperform, and 978 members rating it underperform. Among 802 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 611 give SIRIUS XM Radio a green thumbs-up, and 191 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SIRIUS XM Radio is outperform, with an average price target of $3.66.

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