Dish Network Corp.
), the second largest satellite TV operator in the U.S., to beat
expectations when it reports its second-quarter 2013 results
before the market opens on Aug 6, 2013.
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DISH NETWORK CP (DISH): Free Stock Analysis
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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 +5.56%. This is a
meaningful and leading indicator of a likely positive earnings
Zacks #3 Rank (Hold):
DISH currently has a Zacks Rank #3. Note that the stocks with
Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a
significantly higher chance of beating earnings.
The combination of DISH's Zacks Rank #3 (Hold) and +5.56% ESP
makes us confident of a positive earnings beat on Aug 6, 2013.
What is Driving the Better-Than-Expected
We believe that the stock is currently fairly valued as it has
moved up more than 63% in the last year. In our view, better
pay-TV services, dishNET satellite broadband services and strong
customer faith will help the company to improve its financial
condition. Moreover, the business fundamentals remain intriguing.
DISH Network is gradually improving its technically superior
hardware, the latest of which is a HD DVR set. This new device
will enable subscribers to automatically skip advertisements in
prime time TV programs.
The FCC has allowed DISH Network to deploy a nationwide wireless
network with some restrictive conditions. The company is striving
to become a unique bundled service provider of wireless voice and
data together with a state-of-the-art video distribution network.
Management is yet to take the final decision regarding its
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:
Cablevision Systems Corporation
) has Earnings ESP of +12.50% and carries a Zacks Rank #3 (Hold).
Liberty Interactive Corporation
) has Earnings ESP of +3.70% and carries a Zacks Rank #3 (Hold).
) has Earnings ESP of +1.67% and carries a Zacks Rank #2 (Buy).