Sirius XM (SIRI) To Report Q1 Earnings: What's In Store?

Sirius XM Holdings (NASDAQ:SIRI) is scheduled to report first-quarter 2018 results on Apr 25.

The company has beaten the Zacks Consensus Estimate in one of the trailing four quarters, with an average positive earnings surprise of 12.50%. In the last reported quarter, the company’s adjusted earnings of 5 cents were in line with the Zacks Consensus Estimate.

The Zacks Consensus Estimate for first-quarter earnings and revenues is currently pegged at 5 cents and $1.38 billion, respectively.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

Sirius XM’s healthy net subscriber growth is likely to drive first-quarter 2018 results. In the last quarter, the company added 569K net new subscribers.

Moreover, the company’s improving position in the automotive market is a key catalyst. Sirius also expanded partnership with CDK Global (NASDAQ:CDK) to develop new and innovative connected vehicle solutions.

Additionally, Sirius’ effort to reward shareholders through aggressive share buyback is positive. In January 2018, the company’s board of directors cleared an additional buyback program to the tune of $2 billion.

However, the company’s high-debt level is a concern. Moreover, increased leverage along with stiff competition might act as headwinds for the company in the yet-to-be-reported quarter.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Sirius has a Zacks Rank #4 (Sell) and an Earnings ESP of -2.78%, which indicates an unlikely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are few stocks you may consider as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.

Western Digital (NASDAQ:WDC) has an Earnings ESP of +2.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Paycom Software (NYSE:PAYC) has an Earnings ESP of +0.33% and a Zacks Rank #1.

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