DISH Network Corporation (NASDAQ: $DISH) is a renowned American television services provider. The company is behind the direct-broadcast satellite service Dish, often called Dish Network.
Additionally, it runs Sling TV, the over-the-top IPTV service. The corporation also offers a mobile wireless service called Dish Wireless. The company’s stock recently took a plunge after the release of its latest earnings report.
DISH Network Corporation Earnings Report
In its fiscal Q3 earnings report, DISH Network Corporation reported worse than anticipated figures. The company missed the analysts’ estimates and reported a loss. In the earnings report, Dish Network reported an EPS of $-0.26, against an expected $0.11, missing analysts’ estimates by 336.64%.
Revenue for the quarter was also lower-than-expected by 3.11% at $3.70B, against an expected $3.82B. The earnings report represents the second quarter in which Dish Network has missed analysts’ targets. In Q2, it missed revenue estimates by 2.32%.
In the previous fiscal year, DISH Network Corporation reported an EPS of $0.65, a huge drop from the current 26 cents loss per share. Additionally, revenue was down 10% year-over-year for this quarter.
Adding to its woes, DISH Network Corporation reported that TV subscribers fell by 64,000 compared to a 30,000 increase in the same quarter last year. Additionally, net wireless subscribers fell by 225,000, bigger than the projected 71,000 loss.
Could Dish File for Bankruptcy?
In its earnings report, Dish reported an adjusted EBITDA that was 58% lower than the same period last year. The figures indicate that their leverage is over ten times their reported adjusted EBITDA. Consequently, Dish Network could accelerate its march to bankruptcy. Many analysts were already predicting that the company was headed that way.
DISH Network Cooperation (DISH) Stock Performance
Following the release of the earnings report, DISH stock fell $37.43% and closed trading at $3.44 per share. Year-to-date, DISH stock is down 75.64%.
Dish-EchoStar Merger
Dish Network is planning to go ahead with its EchoStar merger. EchoStar announced the merger back in August 2023. Despite the planned merger, EchoStar stock (NASDAQ: SATS) fell by 31.28% following its disappointing fiscal Q3 2023 earnings report.
EchoStar spun out from Dish Network in 2008. The goal of the merger is to offer Dish more financial flexibility as it seeks to become a major player in the wireless services sector. Charlie Ergen is the co-founder and chair of both companies.
Dish CEO Resignation
Following the ongoing dismal performance, Dish Network Corporation also announced that CEO Erik Carlson would resign on November 12, 2023. Carlson was to resign once the EchoStar merger went through, which is sometime next year.
DISH Network Stock Forecast
DISH Network has received a moderate buy rating from stock analysts. They give the stock a high estimate of $32 and a low estimate of $5, with an average rating of $11.70. The average price estimate represents an upside of over 233%.
Is DISH Network Corporation Stock worth Buying
According to current figures, DISH stock may be undervalued. For value investors, DISH stock would be a great option. However, that all hinges on the incoming CEO turning things around at the company. Always make investment decisions after carefully assessing all facts, including what the analysts say about the stock.
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.