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Can DISH Network (DISH) Surprise this Earnings Season? - Analyst Blog

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Satellite TV operator DISH Network Corp. ( DISH ) is slated to report its third-quarter 2014 financial numbers on Nov 4, before the opening bell.

Last quarter, DISH Network posted a negative earnings surprise of 11.54%. However, the company's earnings have surpassed the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 24.68%. Let's see how things are shaping up ahead of this announcement.

Factors Likely to Influence this Quarter

An extensive wireless spectrum portfolio, innovative product launches like that of the first wireless set-top box in the pay-TV industry, higher average revenue per user (ARPU), the renewal of a multi-year contract with Scripps Networks Interactive and a video streaming deal with Disney are factors that are likely to drive growth for DISH Network going forward. With the launch of such value-added services, the company's top and bottom line will be driven higher. Not only that, it will also help the company to curtail subscriber churn rate and boost ARPU numbers in the coming quarters.

However, the failure to strike a deal with wireless operators to deploy nationwide wireless networks has been a major drawback for DISH Network in recent times. Moreover, declining pay-TV subscribers, rising programming costs and mounting debt may act as headwinds for the company, going forward.

Earnings Whispers?

Our proven model does not conclusively show that DISH Network is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.

Zacks ESP : DISH Network has an earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are poised at 41 cents.

Zacks Rank : DISH Network carries a Zacks Rank #2 (Buy) which increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.

Note that stocks with Zacks Rank #4 and 5 (Sell-rated stocks) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies for investors to consider, that, according to our model have the right combination of elements to post an earnings beat this quarter:

Ruckus Wireless, Inc. ( RKUS ) has an earnings ESP of +60.00% and carries a Zacks Rank #3 (Hold).

DragonWave Inc. ( DRWI ) has an earnings ESP of +16.67% and carries a Zacks Rank #3.

Silver Spring Networks, Inc. ( SSNI ) has an earnings ESP of +10.53% and also carries a Zacks Rank #3.

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DISH NETWORK CP (DISH): Free Stock Analysis Report

SILVER SPRING (SSNI): Free Stock Analysis Report

DRAGONWAVE INC (DRWI): Free Stock Analysis Report

RUCKUS WIRELESS (RKUS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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