What's In Store For DISH Network (DISH) In Q2 Earnings?

DISH Network Corp. (NASDAQ:DISH) , the second largest satellite TV operator in the U.S. – is slated to report its second-quarter 2016 financial numbers before the opening bell on Jul 21.

Last quarter, DISH Network posted a positive earnings surprise of 29.23%. Moreover, the company’s earnings have surpassed the Zacks Consensus Estimate in the previous four quarters, with an average beat of 125.77%. Let’s see how things are shaping up for this announcement.

DISH NETWORK CP Price and EPS Surprise

DISH NETWORK CP Price and EPS Surprise | DISH NETWORK CP Quote

Factors at Play

DISH Network’s top-line growth may remain under pressure as the company’s failure to strike any deal with wireless operators to deploy a nationwide wireless network has been a major headwind.

Millions of DISH Network Corp subscribers have been facing the risk of a blackout of Viacom Inc.’s (NASDAQ:VIAB) channels after the two parties failed to ink a new carriage deal. Viacom has accused the satellite TV provider of making unreasonable demands for the pricing agreement. Another such blackout was faced by subscribers of DISH Network Corp. from NFL Networks where both the parties locked horns over carriage renewal fees, which have been deemed as too high by DISH.

Meanwhile, DISH Network underwent a trial for violating the National Do Not Call Registry laws and was fined up to $24 billion.

However, the company is poised to benefit from its recent launch of a new version of its Internet TV service -- Sling TV, which will allow subscribers to stream on up to three different devices simultaneously for $20 a month.

Thus, DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator should aid the company’s performance as it has emerged as a strong alternative to counter the competitive threat from low-cost video streaming operators.

Earnings Whispers

Our proven model does not conclusively show that DISH Network is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.

Zacks ESP: DISH Network has an earnings ESP of +1.33%. This is because the Most Accurate estimate stands at 76 cents while the Zacks Consensus Estimate is pegged lower at 75 cents.

Zacks Rank: DISH Network has a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks to Consider

Here are some companies which you may consider as our model shows that it these have the right combination of elements to post an earnings beat this quarter.

AT&T Inc. (NYSE:T) with an Earnings ESP of +2.82% and a Zacks Rank #2.

Qualcomm Inc. (NASDAQ:QCOM) with an Earnings ESP of +3.61% and a Zacks Rank #2.