We expect the satellite radio company Sirius XM to report another quarter of sturdy subscriber growth, when it comes out with its Q4 2015 earnings on February 2nd.  Steady growth in new car sales and inroads into the used car market are expected to have driven subscriber growth for the company during the quarter. While new vehicle penetration in the new car market remains stable at 71%, a rise in vehicle sales should have transitioned proportionally into an increase in the subscriber base. For used car market, even though vehicle sales growth is comparatively slower, its big size and Sirius XM’s constantly increasing penetration rate should have bolstered subscriber growth here as well. On the bottomline front, we expect continued improvement in Sirius XM’s margins on account of operating leverage gain that results from top-line growth. During the third quarter of 2015, the company’s EBITDA (earnings before interest tax depreciation and amortization) had increased 17% year over year (six percentage points faster than revenues) to a record high of $447 million.

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