Dish (DISH) Down 24.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Dish Network (DISH). Shares have lost about 24.9% 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 its most recent earnings report in order to get a better handle on the important drivers.
DISH Network's Q2 Earnings Beat, Revenues Decline Y/Y
DISH Network’s second-quarter 2023 earnings of 31 cents per share beat the Zacks Consensus Estimate by 6.9% but decreased 62.2% year over year.
Revenues decreased 7.1% year over year to $3.91 billion and lagged the consensus mark by 0.13%.
Revenues from the United States fell 7.1% year over year to $3.90 billion. Revenues from Canada and Mexico decreased 4.1% to $10.6 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 5.6% year over year to $2.98 billion. DISH exited the reported quarter with 8.904 million Pay-TV subscribers, down 10.9% year over year.
DISH TV subscribers declined 11.4% year over year to 6.901 million. SLING TV subscribers decreased 8.8% year over year to 2 million.
Pay-TV ARPU increased 3.4% year over year to $104.71. DISH TV churn rate was 1.98% compared with the year-ago quarter’s 1.59%.
In the second quarter, DISH TV’s subscriber-acquisition costs increased 19.3% year over year to $1,169.
Wireless revenues were $938 million, down 11.3% year over year. Wireless subscribers at the end of the reported quarter were 7.725 million, down 1.8% year over year.
Wireless ARPU was $36.37, whereas the Wireless churn rate was 4.54% in the reported quarter.
Total costs and expenses increased 5.4% year over year to $3.71 billion.
Operating income was $206.3 million, down 70.2% year over year.
Pay-TV operating income decreased 8.2% year over year to $720.8 million. Wireless operating loss was $514.5 million compared with the year-ago quarter’s loss of $92.5 million.
Balance Sheet
As of Jun 30, 2023, DISH Network had cash, cash equivalents and current marketable investment securities of $1.78 billion compared with $2.54 billion as of Mar 31, 2023.
Total debt, as of Mar 31, 2023, was $21.31 billion compared with $21.46 billion as of Mar 31, 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, 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 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Dish has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Dish belongs to the Zacks Cable Television industry. Another stock from the same industry, Charter Communications (CHTR), has gained 0% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Charter reported revenues of $13.66 billion in the last reported quarter, representing a year-over-year change of +0.5%. EPS of $8.05 for the same period compares with $8.80 a year ago.
Charter is expected to post earnings of $7.87 per share for the current quarter, representing a year-over-year change of +6.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Charter. Also, the stock has a VGM Score of A.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DISH Network Corporation (DISH) : Free Stock Analysis Report
Charter Communications, Inc. (CHTR) : Free Stock Analysis Report
