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Dish Network’s 4Q Sales Rise On Higher ARPU; Street Says Hold

Dish Network Corp reported better-than-expected sales in the fourth quarter as the streaming and wireless services provider saw an increase in average revenue per user (ARPU).

Shares of Dish Network (DISH) rose about 1.43% in pre-market trading on Feb. 22. The company posted earnings per share (EPS) of $1.24 during the fourth quarter, which came in ahead of analysts’ expectations of $0.75.

Total revenue of $4.56 billion topped analysts’ estimates of $4.42 billion. During the quarter, the company’s net pay-TV subscribers decreased by about 133,000 versus a decline of about 194,000 a year ago.

Notably, the company’s ARPU for Pay-TV increased to $94.47 in 4Q as compared with $87.02 in the year-ago period. During 4Q, wireless ARPU rose to $38.32 from $38.17 year-on-year.

Dish Network ended the fourth quarter with 11.29 million in total pay TV subscribers. This included 8.82 million Dish TV subscribers and 2.47 million Sling TV subscribers.

Dish Network’s retail wireless subscribers fell by about 363,000 in 4Q as compared with a net decline of 212,000 in 3Q.

For fiscal 2020, the company generated sales of $15.49 billion, up from the $12.81 billion posted in 2019. Diluted earnings per share came in at $3.02 versus $2.60 in the year-ago period. The company did not provide guidance. (See Dish Network analysis on TipRanks)

Today, Morgan Stanley analyst Benjamin Swinburne raised the stock’s price target to $32 (5% downside potential) from $30 and reiterated a Hold rating.

The rest of the Street has a Hold consensus rating on the stock based on 1 Buy, 2 Holds and 1 Sell. The average analyst price target of $34 implies that the stock is almost fully valued at current levels.

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