Sirius XM (SIRI) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not
Sirius XM SIRI shares ended the last trading session 6.8% higher at $27.22. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.9% gain over the past four weeks.
Sirius XM benefits from strong free cash flow growth, low churn, expanding podcast ad revenue, improving ARPU and enhanced subscriber offerings, supporting profitability and sustained momentum despite modest revenue growth outlook.
This satellite radio company is expected to post quarterly earnings of $0.70 per share in its upcoming report, which represents a year-over-year change of +18.6%. Revenues are expected to be $2.07 billion, up 0.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sirius XM, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SIRI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sirius XM belongs to the Zacks Broadcast Radio and Television industry. Another stock from the same industry, fuboTV Inc. FUBO, closed the last trading session 1.5% higher at $13.29. Over the past month, FUBO has returned -3.4%.
fuboTV's consensus EPS estimate for the upcoming report has changed +123.2% over the past month to -$0.06. Compared to the company's year-ago EPS, this represents a change of +75%. fuboTV currently boasts a Zacks Rank of #3 (Hold).
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