NEW YORK – Shares of Dish Network soared as much as 20%-plus on Monday on first-quarter results that came in better than Wall Street had expected.
The satellite TV giant reported a higher first-quarter profit as it continued to lose subscribers as it has done in recent quarter. The satellite TV giant posted a profit of $313 million, up 21% compared with $259 million in the year-ago period. Revenue rose 2.1% to $2.91 billion.
Dish lost 94,000 subscribers in the latest quarter, but analysts had on average expected it would lose 128,000.
“Dish Network reported better than expected subscriber and financial metrics for the first quarter after reporting several quarters of disappointing results,” said Goldman Sachs analyst Ingrid Chung. “We find it noteworthy that Dish’ average revenue per user was still up 3% year-over-year despite the promotional activity in the quarter (versus DirecTV at up 0.8% year-over-year) and that subscriber acquisition cost was down 7% year-over-year, which implies to us that management is balancing profitability with subscriber growth.”
She said she would review her price target and estimates. At 2:15pm ET, Dish shares were up 20.3% at $18.42.
Meanwhile, sibling EchoStar Corp. swung to a first-quarter loss as it sold less equipment to Dish. The maker of set top boxes and other satellite technology posted a loss of $645,00, compared with a year-ago profit of $5.7 million. Revenue declined 14% to $480 million.