Shares of Dish Network (NASDAQ:DISH) Corp. saw a decline of 5.3% in premarket trading today, following a disappointing third-quarter report and the upcoming resignation of CEO Erik Carlson. This comes despite the company's recent best weekly performance that ended with a 17.3% surge.
The company reported a net loss of $139 million for the third quarter, a stark contrast to last year's net income of $412 million. Additionally, Dish's revenue dropped by 9.5% to $3.70 billion, falling short of the FactSet consensus of $3.82 billion.
In terms of subscribership, Dish experienced a decrease in pay-TV subscribers by 64,000 and retail wireless subscribers by 225,000. Concurrently, the Dish TV churn rate, which measures the number of customers who discontinue their subscription to a service within a given time period, rose to 1.58%. On the other hand, average revenue per pay-TV user saw an increase of 3.1% to $105.25.
CEO Erik Carlson is set to resign on November 12, following his long tenure with the company. Hamid Akhavan, current CEO of EchoStar Corp., is expected to take over as Dish's CEO on November 13. This leadership change aligns with the impending merger between Dish Network Corp. and EchoStar Corp., announced on August 8. Akhavan will lead the combined company once the merger concludes, which is expected by year-end.
Despite these developments, Dish Network Corp.'s overall stock performance has been struggling over the past three months, with a decline of 27.7%.
InvestingPro Insights
InvestingPro's real-time data reveals that Dish Network Corp. has a market capitalization of $2930 million and a low P/E ratio of 1.65, which could indicate that the stock is undervalued. The company's revenue in the last twelve months as of Q2 2023 was $16007.38 million, showing a decline of 8.2%. This aligns with the reported drop in Dish's Q3 revenue.
InvestingPro Tips indicate that the company operates with a significant debt burden and has a declining trend in earnings per share, which could be contributing factors to the company's recent struggles. A noteworthy point is that despite the short-term obligations exceeding liquid assets, Dish has shown a significant return over the last week, which is reflected in the 14.85% one-week total price return.
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