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DISH Network (DISH) Lags Q3 Earnings and Revenues Estimates

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DISH Network Corp. is a leading satellite TV operator in the U.S. The company provides video services under the DISH brand. In addition, the company provides satellite broadband services, and wireline voice and broadband services.

DISH Network’s top-line growth may remain under pressure as the company’s failure to strike any deal with wireless operators to deploy a nationwide wireless network has been a major headwind. Persistent loss of subscribers remains a potent headwind for DISH Network.  Escalating programming and content expenses as well as retransmission fees may also hurt the company’s margins.

We are, however, impressed with DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator. This should help the company counter competitive threats from low-cost video streaming operators. DISH Network is also looking for wireless opportunities. The company has created an extensive portfolio of wireless spectrum, valued at around $50 billion. Launch of a mobile app, DISH Music and Air TV Player bodes well.

Zacks Rank: DISH Network currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  DISH Network has lagged Q3 2017 earnings estimate. Our consensus earnings estimate called for an adjusted EPS (earnings per share) of 60 cents and the company reported adjusted EPS was 57 cents. Investors should note that these figures take out stock option expenses.

Revenue:  DISH Network reported total revenue of $$3,583.45 million, down 4.9% year over year and lagging the Zacks Consensus Estimate of $3,597 million.

Key States to Note:  As of Sep 30, 2017, DISH Network had approximately 13.203 million Pay-TV subscribers compared to 13.643 million Pay-TV subscribers at the end of third quarter 2016. The company added net 16,000 pay-TV subscribers in the reported quarter compared with a loss of 116,000 in the year-ago quarter. In the reported quarter, the company also removed approximately 145,000 subscribers from the regions of Puerto Rico and the U.S. Virgin Islands, due to the impact of Hurricane Maria.

In the third quarter 2017, DISH Network activated approximately 638,000 gross new Pay-TV subscribers, compared to approximately 736,000 gross new Pay-TV subscribers in the prior year's third quarter.

Moreover, DISH Network lost 50,000 broadband subscribers in the reported quarter compared with a loss of 20,000 in the year-ago quarter. As of Sep 30, 2017, DISH Network had 459,000 broadband subscribers, down 22.6% year over year.

Pay-TV subscriber churn rate was 1.57% versus 2.11% for third quarter 2016. Pay-TV ARPU (average revenue per user) for the third quarter 2017 totaled $87.23, compared to the year-ago period's Pay-TV ARPU of $89.44. Pay-TV average subscriber acquisition cost was $554 compared with $620 in the year-ago quarter.

DISH Network Corporation Price and EPS Surprise

 

DISH Network Corporation Price and EPS Surprise | DISH Network Corporation Quote

Check back later for our full write up on this DISH Network earnings report later!

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