Why Dish Network (DISH) Stock Is Slipping Today

Dish Network (DISH) stock is retreating Thursday morning after the company posted better-than-expected earnings for the 2016 second quarter, but with its largest-ever drop in pay-TV subscribers.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Dish Network (DISH) - Get Report are slumping 3.72% to $50.03 on Thursday morning after the company reported better-than-expected earnings for the 2016 second quarter, but with its largest-ever decline in pay-TV subscribers.

Pay-TV subscribers fell 281,000 in the second quarter compared to analysts' estimates for a loss of 91,000 subscribers, Reuters noted.

The subscriber drop comes amid heightened competition from online video services.

But the Englewood, CO-based satellite TV provider reported earnings of 88 cents per diluted share, topping analysts' estimates of 70 cents per share.

Revenue for the quarter was $3.84 billion, while analysts were projecting $3.85 billion.

Last year, Dish launched a less expensive online streaming service Sling TV online that offers smaller bundles of channels, including live programming from networks like ESPN, Reuters noted.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and expanding profit margins.

But the team also finds weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DISH

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