Dish stock rose after it beat estimates
Dish Network (DISH) stock rose 2% on November 7 and closed at $32.12 after the US satellite TV provider reported better-than-expected earnings results for the third quarter. Its revenue, however, missed the estimates marginally in the quarter. The company also lost more satellite TV subscribers than expected, which weighed on its stock. Dish is also on track to build an Internet of Things wireless network and is placing antennas on towers this year.
Dish’s third-quarter results in detail
Dish Network posted revenue of $3.395 billion in the third quarter, slightly missing Wall Street’s expectation of $3.397 billion. However, its revenue fell 5% YoY (year-over-year) from $3.58 billion in the third quarter of 2017.
The company also delivered EPS of $0.82 in the third quarter, better than analysts’ expectation of $0.67 and significantly higher than the $0.57 it reported a year earlier. Its better-than-expected third-quarter results came after it benefited from lower programming costs due to a blackout by Spanish-language TV network Univision, which was related to a dispute over fees. However, the blackout also led to satellite subscriber losses in the quarter. Dish shed a net 367,000 satellite customers in the third quarter, while its online streaming service, Sling TV, added 26,000 subscribers.
The company’s number of net pay-TV subscribers fell ~341,000 in the third quarter, as the company—like other pay-TV companies—has been struggling to stop losses from cord cutting as viewers move to cheaper online streaming services. Dish’s customer losses also increased due to the Univision blackout. Meanwhile, Dish’s churn rate rose to 2.11% from 1.82% last year due to the blackout.