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What's in Store for DISH Network (DISH) This Earnings Season?

Zacks Equity Research

DISH Network’s DISH third-quarter 2019 results are expected to reflect the negative impact of persistent subscriber loss due to stiff competition and cord-cutting in the Pay-TV industry.

For the quarter, the Zacks Consensus Estimate for revenues currently stands at $3.19 billion, suggesting a decline of 6.8% from the figure reported in the year-ago quarter.

Moreover, the consensus mark for third-quarter earnings has been steady at 59 cents over the past 30 days, indicating a decline of 28.1% from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average positive surprise being 2.2%.
 

DISH Network Corporation Price and EPS Surprise

DISH Network Corporation Price and EPS Surprise

DISH Network Corporation price-eps-surprise | DISH Network Corporation Quote

 

DISH’s subscriber loss increased in the last reported quarter. Pay-TV subscribers declined approximately 31K compared with 151K lost in the year-ago quarter. Further, the churn rate was 1.48% compared with 1.46% in the year-ago quarter.

Let’s see how things are shaping up for this announcement.

Factors to Consider

DISH’s efforts to diversify business from being a pure-play satellite-TV operator to an Internet TV operator are not expected to have provided any meaningful impetus to its growth prospects in the third quarter.

The company is likely to have continued losing Pay-TV subscribers to online video streaming and on-demand content providers such as Netflix, Amazon Prime, Hulu and YouTube.

Both factors are expected to have hurt the top line in the to-be-reported quarter.

Moreover, the bottom-line performance is expected to reflect the impact of escalating programming and content expenses along with retransmission fees.

However, Sling TV subscriber base is likely to have increased despite stiff competition in the streaming space. This is likely to have aided the top line in the to-be-reported quarter.

Key Q3 Development

On Jul 26, DISH announced that it will enter the U.S. wireless market as the fourth, nationwide, facilities-based network competitor. The company inked agreements with the Antitrust Division of the U.S. Department of Justice, T-Mobile U.S., Inc. and Sprint Corporation to complete this transaction.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates.

Although DISH has a Zacks Rank #1, its Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are a few stocks you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat this season.

Activision Blizzard ATVI has an Earnings ESP of +24.30% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

iHeartMedia IHRT has an Earnings ESP of +3.17% and a Zacks Rank #2.

Fox Corporation FOXA has an Earnings ESP of +2.97% and a Zacks Rank #3.

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DISH Network Corporation (DISH) : Free Stock Analysis Report
 
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