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It has been about a month since the last earnings report for Dish Network (DISH). Shares have lost about 46.7% 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 the most recent earnings report in order to get a better handle on the important catalysts.
DISH Network Q4 Earnings Beat, Revenues Down Y/Y
DISH Network reported fourth-quarter 2019 earnings of 69 cents per share, beating the Zacks Consensus Estimate by 11.3%. The figure increased 7.8% year over year.
Revenues declined 2.1% year over year to $3.24 billion but surpassed the consensus mark by 2.4%.
DISH exited the reported quarter with 9.394 million DISH TV subscribers, down 5.2% year over year, and 2.592 million Sling TV subscribers, up 7.2%. Total Pay-TV subscribers were 11.986 million, down 2.7% year over year.
Quarter Details
DISH lost 194K net Pay-TV subscribers in the reported quarter. The company had lost roughly 334K net Pay-TV subscribers in the year-ago quarter.
Moreover, DISH lost 94K net Sling TV subscribers in the fourth quarter against 47K added in the year-ago quarter.
However, Pay-TV ARPU climbed 1.7% year over year to $87.02. Additionally, the churn rate was 1.56% compared with the year-ago quarter’s 2.07%.
DISH TV SAC was $850, down 1.3% year over year.
Balance Sheet
As of Dec 31, 2019, cash, cash equivalents and current marketable investment securities were $2.86 billion compared with $1.66 billion, as of Sep 30, 2019.
How Have Estimates Been Moving Since Then?
Estimates review followed a flat path over the past two months. The consensus estimate has shifted 17.65% due to these changes.
VGM Scores
At this time, Dish has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, 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 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 #2 (Buy). We expect an above average return from the stock in the next few months.
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