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DISH Network Q3 Earnings Top, Revenues Lag Expectations

DISH Network Corp.DISH declared mixed financial results in the third quarter of 2015. While the bottom line surpassed the Zacks Consensus Estimate, the top line lagged the same.

Quarterly net income came in at $196.5 million or 42 cents per share compared with $145.5 million or 31 cents in the year-ago quarter. Earnings per share of 42 cents steered past the Zacks Consensus Estimate of 40 cents.

Total revenue in the quarter stood at approximately $3,733.6 million, up 1.5% year over year but lagged the Zacks Consensus Estimate of $3,792 million.

Segment-wise, subscriber-related revenues grossed $3,704.3 million in the third quarter, up 1.5% from the prior-year quarter. Equipment sales & other revenues totaled $16.6 million, up 2.3% from the last-year quarter. Equipment sales, services and other revenues from EchoStar were $12.7 million, down 16.9% from the year-ago quarter.

Third-quarter 2015 operating expenses were $3,291.9 million, up marginally 0.03% year over year. Operating profit was $441.7 million compared with $388.5 million in the year-ago quarter. EBITDA at the end of the third quarter stood at $716.6 million against $604.8 million in the year-ago quarter.

As of Sep 30, 2015, DISH had approximately 13.909 million pay-TV subscribers compared with 14.041 million at the end of the third quarter of 2014. The company lost 23,000 pay-TV subscribers in the reported quarter compared with 12,000 lost in the year-ago quarter. Further, the company added 13,000 broadband subscribers in the reported quarter compared with 28,000 added in the same quarter last year. At the end of the quarter under review, DISH had 608,000 broadband subscribers in comparison with 553,000 at the end of the prior-year quarter.

Average monthly subscriber churn rate in the third quarter stood at 1.86% compared with 1.67% in the prior-year quarter. Average revenue per user was $86.33 against $84.39 in the year-ago quarter. Average subscriber acquisition cost in the reported quarter stood at $736 against $861 a year ago quarter.

In the first nine months of 2015, DISH Network generated $2,230 million of cash from continuing operations compared with $1,786.7 million in the prior-year period. Free cash flow, in the reported period was $1,436.7 million against $869.2 million in the year-ago period.

At the end of the third quarter of 2015, DISH had $1,244.4 million of cash and marketable securities and $13,761.6 million of outstanding debt on its balance sheet compared with $9,236.2 million and $14,284.1 million, respectively, at the end of 2014.

Zacks Rank & Stock to Consider

Currently, DISH carries a Zacks Rank #3 (Hold). Better-ranked stocks in this sector include AT&T Inc. T , Charter Communications Inc. CHTR and Liberty Broadband Corp. LBRDK . All the three stocks currently hold a Zacks Rank #2 (Buy).

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AT&T INC (T): Free Stock Analysis Report

DISH NETWORK CP (DISH): Free Stock Analysis Report

CHARTER COMM-A (CHTR): Free Stock Analysis Report

LIBERTY BRDBD-C (LBRDK): 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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