Earnings Review of Sirius XM (NASDAQ:SIRI), Boston Beer (NYSE:SAM), and Starbucks (NASDAQ:SBUX)
We are in the middle of the earnings reporting season and some of the top companies have already released their earnings. Now lets’ discuss the results that came from different companies such as Boston Beer (NYSE: SAM), Sirius XM (NASDAQ:SIRI) and Starbucks (NASDAQ: SBUX)
The stock of Sirius XM (NASDAQ:SIRI) have risen up by a few percent points. The results of the third quarter, announced before the market opened in October 28, disclosed that the revenue had jumped 10% and the net income had jumped a whopping 117%. But for Sirius XM (NASDAQ:SIRI), the net income is not as important as the cash flow. With a 5% increase in subscribers in the third quarter, the total subscribers increased to 1.2 million.
This caused a whopping 32% increase in the free cash flow and paradoxical as it may seem, a small increase in the number of subscribers caused such a massive increase in cash flow. But, it becomes quite obvious when one looked at the current investment of the company that Sirius XM (NASDAQ:SIRI) is no longer investing on anything new and exciting, because it has invested as much as it ought to a long time ago. Now, it is just reaping the earnings.
The Boston Beer (NYSE:SAM) stock has had a pretty good run over the few weeks. A 47.6% increase in earnings over the same quarter last year was reported, thus making Boston Beer (NYSE:SAM) very lucrative and a stand out performer amongst the pack. Despite these results, the company decided to be more conservative and maintain their four year earnings per share.
Interestingly enough the company is starting to invest on smaller brewers as well now. Besides, they are also investing in Alchemy and Sciences operations, which will operate as an independently owned subsidiary of Boston Beer (NYSE:SAM). Is this investment a goodwill move or a long-term one, this would depend fundamentally on the amount invested which is not disclosed as yet.
With the share prices growing fast, Starbucks (NASDAQ:SBUX) is growing steadily as compare to its competitors. They reported the fourth quarter revenue which increased 10%. The global comparable store sales increased by 5% and earning came in at 77%, thus indicating the fantastic growth rate. With a unique method of paying their employees via mobile phones, the company is considered to be an extremely innovative one. Thus, one might be interested in what their future plans might be.
To sum it up, these three companies are standing out amongst the respective pack but they surely need to deliver more than what they already did by focusing on their positives.