Why Is Dish (DISH) Up 5.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Dish Network (DISH). Shares have added about 5.2% 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 drivers.

DISH Network Q2 Earnings Beat, Revenues Rise Y/Y

DISH Network’s second-quarter 2021 earnings of $1.06 per share beat the Zacks Consensus Estimate by 17.8% and increased 35.9% year over year.

Revenues increased 40.8% year over year to $4.48 billion and beat the consensus mark by 1.4%.

Revenues from the United States surged 40.5% year over year to $4.47 billion. Revenues from Canada and Mexico surged 201% to $15.3 million.

Quarterly Details

Pay-TV revenues increased 2.1% year over year to $3.25 billion. DISH exited the reported quarter with 10.993 million Pay-TV subscribers, down 2.5% year over year. DISH TV subscribers declined 5.1% year over year to 8.554 million. Sling TV subscribers increased 8.2% year over year to 2.439 million.

Pay-TV ARPU increased 4.5% year over year to $96.32. Additionally, the DISH-TV churn rate was 1.29% compared with the year-ago quarter’s 1.14%.

Wireless revenues were $1.23 billion, down 3.3% year over year. Wireless subscribers, at the end of the reported quarter, were 8.895 million.

Wireless ARPU was $38.99 while Wireless churn rate was 4.38% in the reported quarter.

In the second quarter, DISH TV subscriber-acquisition costs increased 6.7% year over year to $890.

Moreover, total cost and expenses increased 40.4% year over year to $3.58 billion.

EBITDA increased 41.2% year over year to $1.07 billion.

Operating income was $906.7 million, up 42.2% year over year. Pay-TV operating income increased 18.9% year over year to $826.9 million. Wireless operating income was $79.8 million against loss of $57.9 million.

Balance Sheet

As of Jun 30, 2021, DISH Network had cash, cash equivalents and current marketable investment securities of $4.82 billion compared with $4.57 billion as of Mar 31, 2021.

Total debt, as of Jun 30, 2021, was $16.23 billion compared with $16.56 billion as of Mar 31, 2021.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 8.67% due to these changes.

VGM Scores

At this time, Dish has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, 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 A. 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. Notably, Dish has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DISH Network Corporation (DISH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.