by Demian Russian
In a company press release issued this morning, Sirius XM Radio (NASDAQ:SIRI) raised full-year 2010 guidance, giving many investors and analysts what they were looking for during the company’s first quarter conference call. The company raised its guidance for full-year 2010 net subscriber additions to 750K, from the over 500K that had previously been forecast. The company now projects full-year 2010 pro forma revenue of $2.75M, pro forma adjusted income from operations of approximately $575 million, and free cash flow to exceed $100M. Many were looking for Sirius XM to raise guidance on the company’s Q1 results, with the company reporting net subscriber additions of 171K and net income of $41M, swinging the company to a profit of a penny per share.
“Our continuing strong operating performance, the recovering economy, and improving auto sales support our increase in guidance today.”
- Mel Karmazin, Sirius XM CEO
Sirius XM’s raised guidance comes on the same day General Motors (NYSE:GM), one of the Satellite Radio provider’s major OEM partners, announced that they too have swung to a profit in Q1. GM posted a net profit of $865 million, compared to a loss of $5.98 billion during the same period a year ago. The last time the company reported a quarterly profit was in the second quarter of 2007. GM reported that it had ramped up production by nearly 57 percent compared to the same period a year ago, and that it was on track to report its first full-year profit since 2004. The U.S. Government now owns approximately 61% of the company.
Position: Long SIRI
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