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Dish (DISH) Up 16.1% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Dish Network (DISH - Free Report) . Shares have added about 16.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Dish due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

DISH Q4 Earnings & Revenues Beat Estimates

DISH Network’s fourth-quarter 2020 earnings of $1.24 per share beat the Zacks Consensus Estimate by 63.2% while also surging 79.7% year over year.

Revenues jumped 40.6% year over year to $4.56 billion and surpassed the consensus mark by 0.5%.

Quarterly Details

DISH exited the reported quarter with 11.290 million Pay-TV subscribers, down 5.8% year over year. DISH TV subscribers declined 6.2% year over year to 8.816 million. Sling TV subscribers declined 4.6% year over year to 2.474 million.

Wireless subscribers, at the end of the reported quarter, were 9.055 million compared with 9.418 at the end of the year-ago quarter period.

Pay-TV ARPU increased 8.6% year over year to $94.47. Wireless ARPU inched up 0.4% year over year to $38.32.

Additionally, the DISH-TV churn rate was 1.44% compared with the year-ago quarter’s 1.56%. Wireless churn rate was 4.88% compared with 4.64% reported at the end of the year-ago quarter.

In the fourth quarter, DISH TV subscriber-acquisition costs decreased 0.9% year over year to $842.

Operating income surged 89.2% year over year to $989.6 million.

As of Dec 31, 2020, DISH Network had cash, cash equivalents and current marketable investment securities of $3.73 billion compared with $2.80 billion as of Sep 30, 2020.

Total debt, as of Dec 31, 2020, was $15.70 billion compared with $14.08 billion as of Sep 30, 2020.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 26.83% due to these changes.

VGM Scores

Currently, Dish has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, 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 A. 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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