With Awesome Auto Sales In March, Will Sirius XM Raise Guidance?

By Spencer Osborne: April auto sales are in and the headlines read that the SAAR for April shows, for the first time this year fell below 15 million. The industry reported SAAR for April was 14.9 million. While SAAR is a gauge that sector watchers use, it is actual sales numbers and not SAAR that impact Sirius XM (SIRI). The actual sales for April 2013 came in at 1,283,999 units.

By Spencer Osborne: We are now three months into 2012 and auto sales are at an amazing 3,464,484 units for the quarter. March did not disappoint by adding just over 1,400,000 units. To give this some perspective, the three-month pace in 2012 is almost 407,000 units better than last year.

By Trefis: U.S. auto sales for March could reach as high as 1.47 million according to auto sector analyst Jeremy Anwyl of Edmunds. This would bring the total quarterly sales close to 3.7 million, which implies a growth of little under 7% over the first quarter of 2012 [1 Million Sirius XM Equipped Cars To Hit The Road In March, SeekingAlpha].

By Spencer Osborne: With half of February gone, it is time to look at where auto sales are stacking up. There are a few points of good news for Sirius XM (NASDAQ:SIRI). The first, and what will be most widely reported is that the pace so far this month will actually exceed the SAAR of 14.1 million that got the year off to an unexpected good start. If the current pace continues we could be looking at a February SAAR of 14.2 million.

By Spencer Osborne: For most of 2011, industry analysts and automakers themselves have been projecting that 2011 auto sales would come in at about 13 million units sold. Ford Motor Company (NYSE:F) had long stated that they saw the auto sector generating sales between 13 million and 13.5 million units this year.

Spencer Osborne submits: On March 11, 2011 an earthquake and Tsunami struck Japan. The devastation to human life was something many will never forget. The impact on the country will take years to recover from.

Spencer Osborne submits: If you have followed the career of Sirius XM Satellite Radio's (NASDAQ:SIRI) CEO Mel Karmazin, you are likely aware of a certain dynamic he has. Karmazin tends to exude confidence, under promise and over-deliver. This quality is very good when the conservative guidance already represents great numbers and progress. When the company beats that guidance, the equity can hold the line and make the next leg up.

By Spencer Osborne: If you are invested in Sirius XM (NASDAQ:SIRI) you should make it a point to keep your finger on the pulse of the auto sector. The satellite radio provider garners the bulk of their subscribers through this channel by installing satellite radios in cars and offering up promotional subscriptions to car buyers. While the average investor waits until the end of the month to look at the data, by then it can be too late.