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VIDEOSilver Lining: DISH Network's Big Picture Looks Good
HD provider misses estimates - but stays profitable.
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This thought is one of the many bouncing around in my cranium this morning because DISH Network (DISH), the Colorado-based satellite-television company, was out with its fourth-quarter earnings earlier this morning.
It earned $0.48 a share. That was a penny south of the estimate I’m seeing. Also, the $2.92 billion in revenue it reported in the quarter looked a bit light compared to what analysts were figuring on as well.
And finally, this line in the release stuck out like a sore thumb to me:
“DISH Network lost approximately 102,000 net subscribers during the quarter ended December 31, 2008, giving the company approximately 13.678 million subscribers at year-end. The number of net subscribers lost for the full year ended December 31, 2008 was also approximately 102,000.”
So where’s the silver lining in all of this?
I’m looking at the bigger picture here. Obviously, I’m not overly impressed by the results, nor the comment about the subscribers. But at the same time, I think the company does have a few things going for it that deserve a mention. Here are 3:
1. While it missed expectations, the miss wasn’t dramatic; plus, it was profitable.
2. The company, according to data, is expected to earn $2.09 a share in 2009. Frankly, I wouldn’t be surprised if that number/estimate gets ratcheted down a bit. But still, it seems pretty eye-catching, given that the shares currently trade at just north of $10.
3. A couple of insiders were bellying up to the bar late last year, albeit at lower prices. But hey, I sense they’ve got some good incentive to find ways to get the stock rolling.
The bottom line here, folks, is that I’m not diving into the stock headlong on the news. But at the same time, I don’t think the investment community is looking at this company through entirely rational eyes. I also don’t think the results warrant a more than 11% haircut in today’s session (the stock is down about that much at the time of writing).
Note that hand-wringing over satellite service provider EchoStar’s (SATS) fourth-quarter results probably isn’t helping the situation.
Hey, have a great day!
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