Tuesday, November 07, 2006
BusinessWeek Comments On XMSR Q3 Earnings
XM Shares Reach Higher OrbitBusinessWeek, Nov 7, 2006
Investors bid the stock higher after the company said it expects positive cash flow from operations in the fourth quarter
XM Satellite Radio (
XMSR) on Nov. 6 announced a 36% improvement of its losses in the third quarter, as it grapples with costs and battles for subscribers.
The satellite radio company said it had a net loss of $84 million in the recent quarter, or 32 cents per share, compared to a net loss of $132 million, or 60 cents per share, during the third quarter of 2005. The mean analyst estimate had been for 46 cents per share loss, according to the San Francisco research firm StarMine.
"With significant growth in revenue and narrowing losses we are on track for positive cash flow from operations in the fourth quarter of this year," said XM's Chief Executive Hugh Panero in a press release.
After the news, the company's shares surged 14.75% to $13.07 per share on the Nasdaq. XM's stock has plunged from its 52 week high of $32 per share on Nov. 21, 2005, following the company's struggles in recent months with challenges such as a probe into its marketing activity, accusations that it misled investors, and criticism of its spending. The stock's 52 week low was $9.63 per share on July 27. ...read more:
here11/07/2006 10:13:00 AM
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