Back to top

Analyst Blog

We expect DISH Network (DISH - Analyst Report) – the second-largest satellite TV operator in the U.S. – to beat expectations when it reports third-quarter 2013 results before the market opens on Nov 12, 2013.

Why a Likely Positive Surprise?

Our proven model shows that DISH Network is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP: The Expected Surprise Prediction or Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +4.76%. This is a meaningful and leading indicator of a likely positive earnings surprise.

Zacks Rank: DISH Network Cable currently has a Zacks Rank #2 (Buy). Note that the stocks with Zacks Rank #1, 2 or 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.

The combination of DISH Network’s Zacks Rank #2 and +4.76% Earnings ESP makes us confident of a positive earnings beat.

What is Driving the Better-Than-Expected Earnings?

The launch of popular innovative devices like Hopper coupled with the availability of large satellite spectrums will act as tailwinds for the company going forward.

On the downside, customers are opting for cheaper video streaming service providers like Netflix, Hulu.Com and YouTube causing a persistent loss of video subscribers. Moreover, growing popularity of Verizon’s FiOS TV and At7T’s U-Verse TV in urban areas is further putting pressure on DISH Network.

Other Stocks to Consider

Other companies you may consider on the basis of our model, which have the right combination of elements to post an earnings beat this quarter are as follows:

Netflix, Inc. (NFLX - Analyst Report) with Earnings ESP of +1.56% and a Zacks Rank #1 (Strong Buy).

TiVo Inc. (TIVO - Analyst Report) with Earnings ESP of +16.67% and a Zacks Rank #2 (Buy).

Novatel Wireless Inc. (NVTL - Analyst Report) with Earnings ESP of +21.43% and a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.