Following the second quarter 2012 earnings announcement on
August 8, most of the analysts covering
DISH Network Corp.
) have reduced their estimates. The brokers have reduced their
estimates based on the ongoing programming fees and litigation
AMC Networks Inc.
Moreover, the analysts remained bearish in their view as the
company suffered a major blow owing to the FCC's delayed decision
to grant the company a waiver to establish wireless broadband
Second Quarter Highlights
On a GAAP basis, quarterly net income was $225.7 million or 50
cents per share, compared with $334.8 million or 75 cents per share
in the year-ago quarter. Adjusted EPS of 59 cents were well below
the Zacks Consensus Estimate of 63 cents.
Quarterly total revenue of $3,571.8 million was down 0.5% year
over year, and also below the Zacks Consensus Estimate of $3,650
million. Quarterly EBITDA was around $760.2 million compared with
$935 million in the year-ago quarter.
Agreement of Analysts
Of the 15 analysts covering the stock in the last 7 days, none
of the analysts have revised their estimate for the third and
fourth quarter of 2012. Over the past 30 days, 10 out of 15
analysts covering the stock have downgraded their estimates while
two have revised their estimates upward for the third quarter of
Similarly, for the fourth quarter of 2012, nine out of the 15
analysts have reduced their estimates while three have moved in the
For 2012, out of the13 analysts covering the stock in the last 7
days, none of the analysts have revised their estimates. Likewise,
for 2013, out of the 15 analysts covering the stock in the last 7
days, none of the analysts have revised their estimates.
In the last 30 days of 2012, 12 out of the 13 analysts covering
the stock have reduced their estimates with no upward revisions.
For 2013, out of the 15 analysts covering the stock, nine have
increased their estimates while three have moved in the opposite
Currently, the Zacks Consensus Estimates for the third and
fourth quarter of 2012 are pegged at 56 cents per share
respectively, with projected annual growth of (21.78%) and
Magnitude of Estimate Revisions
During the last 7 days, the current Zacks Consensus Estimates
for the third and fourth quarter of 2012 are in line with the Zacks
Consensus Estimate of 56 cents. During the last 30 days, the
current Zacks Consensus Estimates for the third and fourth quarter
of 2012 is 7 cents below the earlier estimate of 63 cents.
For 2012, the current Zacks Consensus Estimate is in line with
the prior estimate of $2.45, while for 2013 the current Zacks
Consensus Estimate is in line with the prior estimate of $2.51 in
the last 7 days. However, the Zacks Consensus Estimate for 2012 is
28 cents below the earlier estimate of $2.73 in the last 30 days.
For 2013, the current Zacks Consensus Estimate is 26 cents below
the earlier estimate of $2.77.
The company has outdone the Zacks Consensus Estimates in two out
of the four previous quarters. In the second quarter of 2012, DISH
Network underperformed the estimate by 7 cents or (10.61%).
The estimates for the ongoing and fourth quarter of 2012 contain
a downside risk (essentially a proxy for future earnings surprises)
of 1.79% respectively. The estimate for 2012 remains at breakeven
while the estimate for 2013 contains a downside risk of 0.40%.
DISH Network is transforming itself from a low-priced leader in
the U.S. pay-TV industry to a premium service provider to reduce
its subscribers' churn rate. Based on lower churn rate the company
significantly reduced its net subscriber loss. The new movie
streaming services that DISH Network started after its acquisition
of Blockbuster movie chain, better overall pay-TV services, and
increased customer loyalty helped the company to reduce its churn
However, the company faces stiff competition from
) and other cable TV operators. Furthermore, Telecom operators are
quickly gaining market share from cable TV and satellite TV service
providers by offering fiber-based TV and other high-speed broadband
services to subscribers thus posing a threat to DISH Network.
We maintain our long-term Neutral recommendation on DISH Network
Corp. Currently, DISH has a Zacks #3 Rank, implying a short-term
Hold rating on the stock.
About Earnings Estimate Scorecard
As a PhD from MIT, Len Zacks proved over 30 years ago that
earnings estimate revisions are the most powerful force impacting
stock prices. He turned this ground breaking discovery into two
of the most celebrating stock rating systems in use today. The
Zacks Rank for stock trading in a 1 to 3 month time horizon and
the Zacks Recommendation for long-term investing (6+ months).
These "Earnings Estimate Scorecard" articles help analyze the
important aspects of estimate revisions for each stock after
their quarterly earnings announcements. Learn more about earnings
estimates and our proven stock ratings at:
AMC NETWORKS- A (AMCX): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
DIRECTV (DTV): Free Stock Analysis Report
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