Why Sirius XM Holdings Stock Rose 12% in July

Shares of Sirius XM Holdings (NASDAQ: SIRI) jumped 12.2% last month, according to data from S&P Global Market Intelligence, in part because of the satellite radio and streaming music provider's strong second-quarter results.

Sirius XM's stock entered July with some momentum following an analyst upgrade in June. On June 10, Credit Suisse analyst Brian Russo upgraded Sirius from "neutral" to "outperform" and placed a $7 price target on its stock. "We believe it more likely than not that management will beat its guidance, and therefore see upside to consensus for the remainder of the year," Russo said at the time.

That call proved prescient. On July 30, Sirius XM delivered revenue and earnings that beat Wall Street's expectations. The company's second-quarter revenue, which was boosted by its acquisition of internet radio service Pandora, surged 38% year over year to $1.98 billion. That was above analysts' estimates for revenue of $1.94 billion. Sirius XM's earnings per share, meanwhile, came in at $0.06 per share. That, too, was above analysts' estimates, which had been for EPS of $0.05 per share.

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