EchoStar

(DISH) - Get Report

posted a second-quarter profit Tuesday and set plans to buy back up to $1 billion in stock.

The Englewood, Colo., provider of satellite television service said earnings for the quarter ended June 30 fell to $85 million, or 18 cents a share, from the year-ago $129 million, or 27 cents a share. Revenue rose 26% from a year ago to $1.78 billion.

The latest-quarter numbers fell shy of Wall Street's bottom-line expectations, but were above the Thomson First Call analyst revenue estimate. Shares rose 4%.

The company added 340,000 net new subscribers during the second quarter, giving it a total of 10.1 million at June 30.

The news comes as EchoStar and rival

DirecTV

(DTV)

continue to post strong subscriber gains, while their big cable rivals mostly lost basic subscribers in the latest period. EchoStar's quarter appears similar to DirecTV's in that the company was less profitable than Wall Street had expected, but investors appear to be willing to overlook that fact in light of its strong user gains.

Early Tuesday, shares of EchoStar rose $1.09 to $28.35.