Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
Celebrations may be in order for DISH Network Corporation (NASDAQ:DISH) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that DISH Network will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 5.7% to US$33.78 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
Following the upgrade, the most recent consensus for DISH Network from its five analysts is for revenues of US$15b in 2020 which, if met, would be a notable 17% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to crater 23% to US$1.77 in the same period. Before this latest update, the analysts had been forecasting revenues of US$12b and earnings per share (EPS) of US$1.78 in 2020. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
Check out our latest analysis for DISH Network
The consensus price target increased 14% to US$46.14, with an improved revenue forecast carrying the promise of a more valuable business, in time. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic DISH Network analyst has a price target of US$88.00 per share, while the most pessimistic values it at US$33.00. We would probably assign less value to the forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that DISH Network's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 17%, well above its historical decline of 3.7% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 4.5% next year. So it looks like DISH Network is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at DISH Network.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple DISH Network analysts - going out to 2024, and you can see them free on our platform here.
You can also see our analysis of DISH Network's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
"dish" - Google News
July 16, 2020 at 05:29PM
https://ift.tt/3jbjlvN
Broker Revenue Forecasts For DISH Network Corporation (NASDAQ:DISH) Are Surging Higher - Yahoo Finance
"dish" - Google News
https://ift.tt/2MXZLF4
No comments:
Post a Comment