It has been about a month since the last earnings report for Dish Network . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dish due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
DISH Network Q2 Earnings Beat, Revenues Decline Y/Y
DISH Network’s second-quarter 2022 earnings of 82 cents per share beat the Zacks Consensus Estimate by 24.24% but decreased 22.6% year over year.
Revenues decreased 6.2% year over year to $4.21 billion and lagged the consensus mark by 1.41%.
Revenues from the United States fell 6.1% year over year to $4.19 billion. Revenues from Canada and Mexico decreased 27.9% to $11.1 million.
Quarterly Details
Pay-TV revenues decreased 3% year over year to $3.15 billion. DISH exited the reported quarter with 9.988 million Pay-TV subscribers, down 9.1% year over year.
DISH TV subscribers declined 8.9% year over year to 7.791 million. Sling TV subscribers decreased 9.9% year over year to 2.197 million.
Pay-TV ARPU increased 5.2% year over year to $101.30. Additionally, the DISH TV churn rate was 1.51% compared with the year-ago quarter’s 1.29%.
Wireless revenues were $1.06 billion, down 14.5% year over year. Wireless subscribers, at the end of the reported quarter, were 7.867 million.
Wireless ARPU was $37.90 while Wireless churn rate was 4.39% in the reported quarter.
In the second quarter, DISH TV’s subscriber-acquisition costs increased 10.1% year over year to $980.
Total cost and expenses decreased 1.8% year over year to $3.52 billion.
Operating income was $692.9 million, down 23.6% year over year.
Pay-TV operating income decreased 5% year over year to $785.5 million. Wireless operating loss was $92.5 million against the year-ago quarter’s income of $79.8 million.
Balance Sheet
As of Jun 30, 2022, DISH Network had cash, cash equivalents and current marketable investment securities of $2.75 billion compared with $3.23 billion as of Mar 31, 2022.
Total debt, as of Jun 30, 2022, was $21.09 billion compared with $21.42 billion as of Mar 31, 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 6.93% due to these changes.
VGM Scores
At this time, Dish has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dish has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Dish (DISH) Down 7.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Dish Network . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Dish due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
DISH Network Q2 Earnings Beat, Revenues Decline Y/Y
DISH Network’s second-quarter 2022 earnings of 82 cents per share beat the Zacks Consensus Estimate by 24.24% but decreased 22.6% year over year.
Revenues decreased 6.2% year over year to $4.21 billion and lagged the consensus mark by 1.41%.
Revenues from the United States fell 6.1% year over year to $4.19 billion. Revenues from Canada and Mexico decreased 27.9% to $11.1 million.
Quarterly Details
Pay-TV revenues decreased 3% year over year to $3.15 billion. DISH exited the reported quarter with 9.988 million Pay-TV subscribers, down 9.1% year over year.
DISH TV subscribers declined 8.9% year over year to 7.791 million. Sling TV subscribers decreased 9.9% year over year to 2.197 million.
Pay-TV ARPU increased 5.2% year over year to $101.30. Additionally, the DISH TV churn rate was 1.51% compared with the year-ago quarter’s 1.29%.
Wireless revenues were $1.06 billion, down 14.5% year over year. Wireless subscribers, at the end of the reported quarter, were 7.867 million.
Wireless ARPU was $37.90 while Wireless churn rate was 4.39% in the reported quarter.
In the second quarter, DISH TV’s subscriber-acquisition costs increased 10.1% year over year to $980.
Total cost and expenses decreased 1.8% year over year to $3.52 billion.
Operating income was $692.9 million, down 23.6% year over year.
Pay-TV operating income decreased 5% year over year to $785.5 million. Wireless operating loss was $92.5 million against the year-ago quarter’s income of $79.8 million.
Balance Sheet
As of Jun 30, 2022, DISH Network had cash, cash equivalents and current marketable investment securities of $2.75 billion compared with $3.23 billion as of Mar 31, 2022.
Total debt, as of Jun 30, 2022, was $21.09 billion compared with $21.42 billion as of Mar 31, 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 6.93% due to these changes.
VGM Scores
At this time, Dish has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dish has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.