Sirius Stock New contract With Howard Stern

Howard Stern has signed a new five-year contract with Sirius XM (SIRI_) this morning, ending months of speculation about the plans for the shock jock's. His statement came less than a month before his original five-year, $ 500 million deal was to expire.

Investors are waiting on bated breath for any indications of plans to Stern in the past year. This morning, the stock price of Sirius XM spiked by more than 10% to $ 1.44 in premarket trading on news that Stern would return to satellite radio.

Shares have since leveled up to $ 1.40 while more than 152.5 million shares traded hands today, almost three times the 3-month average daily volume of 56.5 million.

Sirius recently hit a string of new 52-week high and is steadily gaining ground since its year low of about 56 cents.

Sirius is up almost 120% last year, as investors were bullish on positive news. November 4, shares spiked in the 52-week high of $ 1.61 after the satellite radio company announced that it swung to third-quarter profit and raised its guidance for the year.

For the quarter ended September 30, 2010, the company saw earnings swing to a profit of $ 67.6 million, or a penny per share, compared with a loss of $ 151.5 million, or 4 cents per share, for the same period a year ago . Revenues came in one penny ahead of analyst estimates of 0 cents.

Management raised its forecast for the year, predicts adjusted earnings before interest, taxes, depreciation and amortization will come in around $ 600 million, compared with the previous forecast of $ 575 million. He also expects adjusted earnings in excess of $ 2.8 billion in 2010.

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