Dish (DISH) Up 9.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Dish Network (DISH). Shares have added about 9.3% 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 the most recent earnings report in order to get a better handle on the important drivers.
DISH Network Q3 Earnings Miss, Revenues Decline Y/Y
DISH Network reported third-quarter 2023 loss of 26 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 25 cents per share. The bottom line also declined 140% year over year.
Revenues decreased 9.7% year over year to $3.7 billion and lagged the consensus mark by 3.69%.
Revenues from the United States fell 9.5% year over year to $3.69 billion. Revenues from Canada and Mexico decreased 23.2% to $9.97 million.
DISH also announced that it has entered into an agreement to acquire EchoStar Corporation in an all-stock merger.
Quarterly Details
Pay-TV revenues decreased 8.8% year over year to $2.8 billion. DISH exited the reported quarter with 8.84 million Pay-TV subscribers, down 11.8% year over year.
DISH TV subscribers declined 11.7% year over year to 6.72 million. SLING TV subscribers decreased 12.1% year over year to 2.12 million.
Pay-TV average revenue per user (ARPU) increased 3.1% year over year to $105.25. DISH TV churn rate was 1.58% compared with the year-ago quarter’s 1.53%.
Wireless revenues were $900 million, down 11.6% year over year. Wireless subscribers at the end of the reported quarter were 7.5 million, down 6.3% year over year.
Wireless ARPU was $35.74, whereas the Wireless churn rate was 4.21% in the reported quarter.
Total costs and expenses increased 2.1% year over year to $3.74 billion.
Operating loss was $41.8 million, down 109.8% year over year.
Pay-TV operating income decreased 9% year over year to $589.46 million. Wireless operating loss was $631.27 million compared with the year-ago quarter’s loss of $220.62 million.
Balance Sheet
As of Sep 30, 2023, DISH Network had cash, cash equivalents and current marketable investment securities of $1.035 billion compared with $1.78 billion as of Jun 30, 2023.
Total debt, as of Sep 30, 2023, was $21.24 billion compared with $21.31 billion as of Jun 30, 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -107.58% due to these changes.
VGM Scores
At this time, Dish has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Dish has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Dish is part of the Zacks Cable Television industry. Over the past month, Liberty Global Ltd (LBTYA), a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended September 2023 more than a month ago.
Liberty Global Ltd reported revenues of $1.85 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $1.57 for the same period compares with $3.80 a year ago.
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