It has been about a month since the last earnings report for Dish Network . Shares have added about 33% 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 & Revenues Beat Estimates
DISH Network’s third-quarter 2020 earnings of 86 cents per share beat the Zacks Consensus Estimate by 32.3% while also surging 30.3% year over year.
Revenues jumped 43% year over year to $4.53 billion and surpassed the consensus mark by 13.5% Service revenues surged 35.4% year over year to $4.22 billion. Equipment sales and other revenues were $309.4 million compared with $52.8 million in the year-ago quarter.
U.S. revenues jumped 43.1% year over year to $4.52 billion. Canada and Mexico revenues increased 31.3% from the year-ago quarter to $15.1 million.
DISH exited the reported quarter with 11.423 million DISH TV subscribers, down 5.6%, and 2.458 million Sling TV subscribers, down 8.5%. Total Pay-TV subscribers were 11.423 million, down 6.2% year over year.
It goes without saying that coronavirus adversely impacted DISH’s quarterly results. The pandemic caused severe disruptions in certain commercial segments served by the company, including the hospitality and airline industries.
Markedly, DISH paused services or provided temporary rate relief for roughly 250,000 commercial accounts and removed the same from its ending Pay-TV subscriber count as of Mar 31, 2020. During the reported quarter, 35,000 of these subscribers resumed normal service and they were added to the DISH TV subscriber count as of Sep 30, 2020.
Moreover, as a result of the Boost Mobile and the Ting Mobile acquisitions, DISH entered retail wireless business in the reported quarter. The company acquired more than 9 million subscribers as a result of the Boost Mobile buyout. The Ting Mobile acquisition added more than 200,000 subscribers.
Top-Line Details
DISH currently operates two business segments - Pay-TV and Wireless.
Pay-TV revenues (70.4% of revenues) increased 0.7% from the year-ago quarter to $3.19 billion.
Pay-TV video and related revenues climbed 0.7% to $3.14 billion. However, Pay-TV equipment sales and other revenues declined 3.2% year over year to $51.1 million.
The company added 116K net Pay-TV subscribers in the reported quarter compared with 148K it gained a year ago. Moreover, DISH gained 203K net Sling TV subscribers but lost 87K DISH TV subscribers.
However, Pay-TV ARPU increased 7.6% year over year to $91.79. Additionally, the churn-out rate was 1.41% compared with the year-ago quarter’s 1.69%.
Wireless revenues were $1.34 billion in the reported quarter.
Operating Details
In the third quarter, DISH TV subscriber-acquisition costs increased 4.5% year over year to $864.
Selling, general & administrative expenses increased 15.3% year over year to $516.6 million.
EBITDA surged 62.2% year over year to $968.8 million.
Operating income also surged 73% year over year to $811.2 million. Pay-TV operating income surged 63.5% year over year to $803.8 million. Wireless operating income was $7.4 million against loss of $22.8 million.
Balance Sheet
As of Sep 30, 2020, DISH Network had cash, cash equivalents and current marketable investment securities of $2.80 billion compared with $2.63 billion as of Jun 30, 2020.
Total debt as of Sep 30, 2020 was $14.08 billion compared with $13.06 billion as of Jun 30, 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 19.26% due to these changes.
VGM Scores
At this time, Dish has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dish has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Image: Bigstock
Why Is Dish (DISH) Up 33% Since Last Earnings Report?
It has been about a month since the last earnings report for Dish Network . Shares have added about 33% 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 & Revenues Beat Estimates
DISH Network’s third-quarter 2020 earnings of 86 cents per share beat the Zacks Consensus Estimate by 32.3% while also surging 30.3% year over year.
Revenues jumped 43% year over year to $4.53 billion and surpassed the consensus mark by 13.5% Service revenues surged 35.4% year over year to $4.22 billion. Equipment sales and other revenues were $309.4 million compared with $52.8 million in the year-ago quarter.
U.S. revenues jumped 43.1% year over year to $4.52 billion. Canada and Mexico revenues increased 31.3% from the year-ago quarter to $15.1 million.
DISH exited the reported quarter with 11.423 million DISH TV subscribers, down 5.6%, and 2.458 million Sling TV subscribers, down 8.5%. Total Pay-TV subscribers were 11.423 million, down 6.2% year over year.
It goes without saying that coronavirus adversely impacted DISH’s quarterly results. The pandemic caused severe disruptions in certain commercial segments served by the company, including the hospitality and airline industries.
Markedly, DISH paused services or provided temporary rate relief for roughly 250,000 commercial accounts and removed the same from its ending Pay-TV subscriber count as of Mar 31, 2020. During the reported quarter, 35,000 of these subscribers resumed normal service and they were added to the DISH TV subscriber count as of Sep 30, 2020.
Moreover, as a result of the Boost Mobile and the Ting Mobile acquisitions, DISH entered retail wireless business in the reported quarter. The company acquired more than 9 million subscribers as a result of the Boost Mobile buyout. The Ting Mobile acquisition added more than 200,000 subscribers.
Top-Line Details
DISH currently operates two business segments - Pay-TV and Wireless.
Pay-TV revenues (70.4% of revenues) increased 0.7% from the year-ago quarter to $3.19 billion.
Pay-TV video and related revenues climbed 0.7% to $3.14 billion. However, Pay-TV equipment sales and other revenues declined 3.2% year over year to $51.1 million.
The company added 116K net Pay-TV subscribers in the reported quarter compared with 148K it gained a year ago. Moreover, DISH gained 203K net Sling TV subscribers but lost 87K DISH TV subscribers.
However, Pay-TV ARPU increased 7.6% year over year to $91.79. Additionally, the churn-out rate was 1.41% compared with the year-ago quarter’s 1.69%.
Wireless revenues were $1.34 billion in the reported quarter.
Operating Details
In the third quarter, DISH TV subscriber-acquisition costs increased 4.5% year over year to $864.
Selling, general & administrative expenses increased 15.3% year over year to $516.6 million.
EBITDA surged 62.2% year over year to $968.8 million.
Operating income also surged 73% year over year to $811.2 million. Pay-TV operating income surged 63.5% year over year to $803.8 million. Wireless operating income was $7.4 million against loss of $22.8 million.
Balance Sheet
As of Sep 30, 2020, DISH Network had cash, cash equivalents and current marketable investment securities of $2.80 billion compared with $2.63 billion as of Jun 30, 2020.
Total debt as of Sep 30, 2020 was $14.08 billion compared with $13.06 billion as of Jun 30, 2020.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 19.26% due to these changes.
VGM Scores
At this time, Dish has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Dish has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.