Sirius XM Strengthened, Level 3 Misses Estimates, Huntington Bancshares Surge

Aug. 1, 2011 - PRLog -- Sirius XM Radio Inc (SIRI): SIRI has been strengthened by the fact the company weathered the hoopla of the launch of competitors Spotify and Pandora, and while the competition from these firms is real, it is nowhere near as worrisome as first thought. Spotify and Pandora are ultimately limited by their dependence on wireless bandwidth, which will only increase in cost as wireless providers switch to metered data plans.

Other factors include that as of July 15, 2011, short interest was 274,572,534 shares. While below peak levels, this short interest amount is still elevated and indicates bearishness and room for additional upside. In addition, the days to cover is well above 3x and it could provide a multiplier to any stock price rally.

Level 3 Communications, Inc (LVLT): LVLT’s second-quarter losses widened as higher expenses related to an acquisition masked revenue growth. Shares were down 3.6% to $2.15 in premarket trading because results missed analyst estimates. The stock has gained 88% over the past 12 months. They have posted quarterly losses for more than two years as many businesses put on hold their plans to spend more on Internet networking services. Earlier this month, the U.S. Department of Justice requested further information from the company regarding its plans to buy Global Crossing Ltd. (GLBC). Level 3 said in April it would acquire Global Crossing for $1.9 billion in stock, a combination the two companies hope will strengthen their ability to charge more for delivering Internet services over long distances.
Level 3 reported a loss of $181 million, or 11 cents a share, compared with a year-earlier loss of $169 million, or 10 cents a share. The most recent period included a charge of $23 million for debt extinguishment and $14 million in costs associated with the acquisition of Global Crossing. Revenue rose 2.4% to $913 million.
Analysts polled by Thomson Reuters had most recently forecast a per-share loss of 9 cents on $937 million in revenue.

Huntington Bancshares Incorpora (HBAN): HBAN’s second-quarter earnings surged, but shares slumped after its chief executive warned the economy is weaker than anticipated. Earnings nearly tripled in the absence of prior-year charges and as the regional bank reported provisions for potential loan losses fell to the lowest level since the first quarter of 2007. Lending still was a growth spot.
The results also led HBAN, a Columbus, Ohio lender and one of the largest regional banks in the nation, to boost its dividend to four cents a share from a penny. The board will look to keep the dividend rate between 20% and 30% of net income.
HBAN operates as the holding company for The Huntington National Bank that provides commercial and consumer banking services. It offers deposit products, including checking accounts, savings accounts, interest bearing and non-interest bearing demand deposits
But Chief Executive Stephen Steinour tempered the enthusiasm from the quarterly beat and dividend by warning final results for the year might not be up to expectations.  

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