Why Is Dish (DISH) Up 13.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Dish Network (DISH). Shares have added about 13.6% 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 catalysts.
DISH Network Q3 Earnings Beat, Revenues Decline Y/Y
DISH Network’s third-quarter 2022 earnings of 65 cents per share beat the Zacks Consensus Estimate by 18.18% but decreased 26.1% year over year.
Revenues decreased 8% year over year to $4.09 billion and lagged the consensus mark by 1.29%.
Revenues from the United States fell 7.9% year over year to $4.08 billion. Revenues from Canada and Mexico decreased 23.1% to $13 million.
Pay-TV revenues decreased 4.4% year over year to $3.08 billion. DISH exited the reported quarter with 10.018 million Pay-TV subscribers, down 8.8% year over year.
DISH TV subscribers declined 9.7% year over year to 7.607 million. Sling TV subscribers decreased 5.7% year over year to 2.411 million.
Pay-TV ARPU increased 6% year over year to $102.07. The DISH TV churn rate was 1.53% compared with the year-ago quarter’s 1.39%.
In the third quarter, DISH TV’s subscriber-acquisition costs increased 23.9% year over year to $1,033.
Wireless revenues were $1.02 billion, down 17.2% year over year. Wireless subscribers at the end of the reported quarter were 8.007 million, down 8.7% year over year.
Wireless ARPU was $37.64, whereas the Wireless churn rate was 4.28% in the reported quarter.
Total costs and expenses decreased 1.7% year over year to $3.67 billion.
Operating income was $427 million, down 40.5% year over year.
Pay-TV operating income decreased 7.4% year over year to $647.7 million. Wireless operating loss was $220.6 million against the year-ago quarter’s income of $18 million.
As of Sep 30, 2022, DISH Network had cash, cash equivalents and current marketable investment securities of $920.6 million compared with $3.23 billion as of Jun 30, 2022.
Total debt, as of Sep 30, 2022, was $19.45 billion compared with $21.09 billion as of Jun 30, 2022.
DISH announced its plan to offer $2 billion aggregate principal amount of its senior secured notes. The net proceeds of the offering are intended to be used for general corporate purposes, including the buildout of wireless infrastructure.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
Currently, Dish has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, 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, Liberty Global PLC (LBTYA), has gained 15.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Liberty Global PLC reported revenues of $1.75 billion in the last reported quarter, representing a year-over-year change of -8.2%. EPS of $4.87 for the same period compares with $0.48 a year ago.
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