DISH Network Corporation.
), the second-largest satellite TV operator in the U.S., to beat
expectations when it reports its first-quarter 2013 results
before the market opens on May 9, 2013.
Why a Likely Positive Surprise?
Our proven model shows that DISH is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP
: Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is +1.89%. This is a
meaningful and leading indicator of a likely positive earnings
Zacks Rank #3 (Hold)
: DISH currently has a Zacks Rank #3. Note that the stocks with a
Zacks Rank #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a
significantly higher chance of beating the earnings.
The combination of DISH's Zacks Rank #3 (Hold) and +1.89% ESP
makes us confident of a positive earnings beat on May 9,
What is Driving the Better-Than-Expected
We expect DISh to benefit from the launch of its nationwide
satellite-based broadband service called "dishNET, which covers
around 2 million people with a starting speed of 5 Mbps.
Moreover, DISH has renewed its agreement with Frontier
Communications, ViaSat and Charter Communications to provide
broadband satellite service to its huge customer base in rural
areas to download movies at a rapid speed. We believe that these
initiatives will boost the company's revenues apart from
improving its churn rate.
The company's policy of not raising its prices unlike its
competitors will also help it to reduce its churn rate and ramp
up customer growth in the future. However, DISH is facing fierce
competition from telecom carriers, who are gaining market share
from satellite TV operators by offering fiber-based TV and other
high-speed broadband services to subscribers. Rising programming
expenses also remain a near-term headwind for the company and
could impact the company's bottom line in the coming
Other Stocks to Consider
Other companies you may consider on the basis of our model,
which have the right combination of elements to post an earnings
beat this quarter are as follows:
United States Cellular Corporation
) currently has an Earnings ESP of +450.00% and holds a Zacks
Rank #3 (Hold).
) has an Earnings ESP of +6.45% and carries a Zacks Rank #3
) has an Earnings ESP of +1.89% and holds a Zacks Rank #3
DISH NETWORK CP (DISH): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
TELUS CORP (TU): Free Stock Analysis Report
US CELLULAR (USM): Free Stock Analysis Report
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