Dish Reports Q3 Loss, Stock Plunges Continuing 2023 Slide

Must read

Betterhumans Inc. CEO James Clement Is On A Mission To Make You Healthier And Live Longer

Non-profit scientific research organization Betterhumans Inc is working to create affordable solutions for lengthening your lifespan and reversing the effects of aging Health, Family, and...

Lululemon’s Fleece Everywhere Belt Bag Is Finally Back In Stock

Photo: Courtesy of Lululemon.You never want something until you can't have it. On The Sell-Out, we're getting the scoop from your favorite retailers on what's...

From The Stage To The Runways, Balletcore’s Latest Wave Is All About Rebellion

Photo: Courtesy of Adeam.Adeam spring/summer 2024.Last September, during New York Fashion Week, New York City Ballet principal dancer Tiler Peck closed the Adeam fashion...

Dish Network (DISH) reported third-quarter earnings that missed consensus estimates as it swung to a loss. News that the company’s chief executive will step down also sent Dish stock down, continuing its slide in 2023.

X

Dish has a pending merger with satellite communications firm EchoStar (SATS). Both companies are controlled by satellite TV services pioneer Charles Ergen.

For the quarter ending Sept. 30, Dish reported a loss of 26 cents per share vs. a 65-cent profit a year earlier. Revenue fell nearly 10% to $3.7 billion.

Analysts polled by FactSet predicted Q3 profit of 11 cents on revenue of $3.8 billion.

Pay-TV subscribers fell by 64,000, compared to an increase of 30,000 in the year-earlier quarter. Also, the company lost  225,000 net wireless subscribers, above estimates for a loss of 71,000.

Dish Stock: Bankruptcy In The Cards?

“The overwhelming probability here has always been that Dish would enter bankruptcy sometime in the next few years,” Craig Moffett, analyst at MoffettNathanson, said in a report. “Today’s results likely accelerate that.”

He added: “Today’s results leave Dish’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) down 58% from a year ago and burning cash at a $2 billion annual rate. Their leverage is now above ten times EBITDA. Even on a pro forma basis for their EchoStar deal their leverage is over eight times.”

On the stock market today, Dish stock collapsed 37.4% to close at 3.44. With the loss, Dish stock is down roughly 75% in 2023.

Dish also said that CEO Erik Carlson intends to resign effective Nov. 12. In addition, Dish said that it intends to work with EchoStar to appoint that company’s president and CEO, Hamid Akhavan, to the combined company’s top job.

Ergen spun out EchoStar from Dish in 2008.

The company has been building out of a 5G wireless network, with costs pressuring Dish stock. Meanwhile, Dish acquired Sprint’s Boost-branded prepaid wireless business in 2020.

Follow Reinhardt Krause on X, formerly called Twitter,    @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

YOU MIGHT ALSO LIKE:

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Learn How To Time The Market With IBD’s ETF Market Strategy

How To Use The 10-Week Moving Average For Buying And Selling

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

More articles

Latest article

DAVID ELLEFSON’s KINGS OF THRASH Announces US Tour Performing MEGADETH Material

Kings Of Thrash, the band featuring former Megadeth members bassist David Ellefson and...

Mark Meadows Expected To Lose Appeal To Get RICO Case Moved To Federal Court

It looks like former Trump White House Chief of Staff Mark Meadows is going to lose his appeal to have his Georgia...

POSSESSED Is Preparing To Possess Your Ears in 2024

Legendary Californian death metallers Possessed, who practically invented the genre, are...

Amazon rolls out first European Rivian vans in Germany

By Nick Carey(Reuters) - E-commerce giant Amazon will deploy its first European vans from U.S. electric vehicle (EV) maker Rivian in Germany over the...