SIRI Sirius Satellite: Q4 preview

Monday, January 28, 2008

SIRI Sirius Satellite: Q4 preview; 2008 guidance likely encouraging - Wedbush (2.89 )

Wedbush is expecting SIRI to guide to at least 10 million subs for 2008 vs. our 10.2 million forecast up from 8.3 million subs in 2007. Cash flow guidance should be the other key area, with the question being whether or not Sirius guides to being free cash flow positive for the year. However, even though they are not expecting the co to turn FCF positive until 2009, firm still expects marked improvement in 2008. Consequently it would not be inconceivable if the co guides to positive free cash flow in 2008, assuming no merger. All that said, firm would be disappointed if the co backed away from stand alone guidance as a result of the merger process.