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DISH Network (DISH) Lags Q2 Earnings and Revenues
August 03, 2017

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DISH Network Corp. (DISH - Free Report) 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 under the dishNET brand.

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 by DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator should help the company counter competitive threat from low-cost video streaming operators.

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. The company has generated a positive average earnings surprise of 7.79% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings:  DISH Network has lagged Q2 2017 earnings estimate. Our consensus earnings estimate called for an adjusted EPS (earnings per share) of 76 cents and the company reported adjusted EPS was 69 cents. Investors should note that these figures take out stock option expenses.

Revenue:  DISH Network reported total revenue of $3,643.6 million underperforming our estimate of $3,717 million.

Key States to Note:  In the reported quarter, DISH Network lost a net 196,000 pay-TV (including satellite TV and Sling TV) customers. At the end of the second quarter of 2017, the company had 13.332 million pay-TV subscribers, down 1.9% year over year. The company also lost 46,000 high-speed broadband subscribers in the reported quarter.

Pay-TV churn rate in the second quarter of 2017 was 1.59% compared with 1.96% in the year-ago quarter. Pay-TV ARPU (average revenue per user) was $87.25 compared with $89.98 in the year-ago quarter. Pay-TV average subscriber acquisition cost was $690 compared with $756 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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