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DISH Network (DISH) Q2 Earnings & Revenues Miss Estimates

DISH Network Corp. DISH reported weak financial results in the second quarter of 2017. Both the top and bottom line lagged the Zacks Consensus Estimate.

Quarterly net income came in at $40.1 million or 9 cents per share compared with $424.1 million or 91 cents in the year-ago quarter. Second quarter adjusted earnings per share of 69 cents fell below the Zacks Consensus Estimate of 76 cents.

Total revenue in the reported quarter was approximately $3,643.6 million, down 5.7% year over year and lagging the Zacks Consensus Estimate of $3,717 million.

In the second quarter of 2017, segment-wise, subscriber-related revenues grossed $3,614.3 million, down 5.5% year over year. Equipment sales & other revenues totaled $29.4 million, down 23.5% year over year.

In the reported quarter, operating expenses were a little over $3,391.5 million, up 5.2% year over year. Operating income was $252.1 million compared with $640.3 million in the year-ago quarter. EBITDA in the second quarter of 2017 was $448.3 million compared with $911.3 million in the prior-year quarter.

As of Jun 30, 2017, DISH Network had approximately 13.332 million pay-TV subscribers, down 1.9% year over year.  The company lost a net 196,000 pay-TV subscribers in the reported quarter compared with a loss of 281,000 in the year-ago quarter.

Moreover, DISH Network lost 46,000 broadband subscribers in the reported quarter compared with a loss of 15,000 in the year-ago quarter. As of Jun 30, 2017, DISH Network had 509,000 broadband subscribers, down 17% year over year.

Pay-TV churn rate in the second quarter of 2017 was 1.59% compared with 1.96% in the year-ago quarter. Pay-TV ARPU (average revenue per user) was $87.25 compared with $89.98 in the year-ago quarter. Pay-TV average subscriber acquisition cost was $690 compared with $756 in the year-ago quarter.

In the first half of 2017, DISH Network generated $1,493.1 million of cash from operations compared with $1,591.7 million in the prior-year period. Free cash flow in the reported period was $828.3 million compared with $866.8 million in the year-ago period.

At the end of the second quarter of 2017, DISH Network had $2,386.5 million of cash and marketable securities and $18,146.8 million of outstanding debt on its balance sheet compared with $5,359.3 million and $16,478.9 million, respectively, at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.78 compared with 0.77 at 2016-end.

DISH Network Corporation Price, Consensus and EPS Surprise

 

DISH Network Corporation Price, Consensus and EPS Surprise | DISH Network Corporation Quote

DISH Network faces intense competition in the pay-TV market from rival players like AT&T Inc. T, Comcast Corp. CMCSA and Charter Communications Inc. CHTR. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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