Sirius XM Radio Inc (SIRI): What’s Driving The Company’s Earnings?

In addition, Sirius XM Radio Inc (NASDAQ:SIRI) investors are trying to figure out the strategy that major shareholder Liberty Media Corp (NASDAQ:LMCA) has for its holdings in the company. Last month, Liberty bought a 27% stake in cable TV operator Charter Communications, Inc. (NASDAQ:CHTR), using capital that some Sirius investors had hoped Liberty would spend making a premium buyout offer for the remainder of the satellite radio company that it doesn’t own. So far, Liberty Media Corp (NASDAQ:LMCA) hasn’t committed either to a buyout or to a spinoff of its Sirius shares, seemingly content to keep its majority control.

In Sirius XM Radio Inc (NASDAQ:SIRI)’s report, watch closely to see if the company begins to ramp up its guidance for the full 2013 year. Last year, similarly conservative early estimates led to much higher actual results later on, and if the same trend holds true this year, then the stock could break out of its holding pattern sooner rather than later.

The article What’s Driving Sirius XM Radio’s Earnings? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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