Tag Archives: dish

Comcast Q1: NBCU Film Weak, TV Ads Gain; Theme Parks Strong

Comcast ( CMCSA ) is expected to report flat Q1 EPS with revenue rising 4%, though analysts expect a strong quarter in video subscriber additions. At NBCUniversal, analysts say ad revenue could be a bright spot at TV broadcasting, though film revenue will fall from the year-earlier quarter amid a weaker slate of movies. Theme parks might get a boost from late March school breaks tied to Easter. Comcast stock has risen 7.5% in 2016, despite regulatory headwinds. The nation’s No. 1 cable TV firm is slated to release Q1 earnings before the open Wednesday. Comcast holds an IBD Composite Rating of 74 out of a possible 99. Cable TV firms have been squabbling with the Federal Communications Commission over broadband privacy issues as well as the agency’s plans to open up the set-top box market  to more competition. Some analysts say there could be more scrutiny of broadband pricing and data caps depending on the outcome of the 2016 election. In Q1, rival Verizon Communications ( VZ ) said it would expand its FiOS broadband and TV services to Boston, a Comcast market, though its timing is unclear. Analysts polled by Thomson Reuters expect Comcast to report profit of 79 cents, even with the year-earlier period, which would be its worst showing in at least 19 quarters. Analysts estimate revenue will rise 4% to $18.64 billion, its smallest percentage rise in four quarters. Comcast stock was down a fraction in afternoon trading in the stock market today , near 60.50. On Comcast’s earnings call, executives might discuss NBCU’s upcoming contract renewals with Dish Network ( DISH ) and Verizon Communications ( VZ ), and a programming dispute with 21 st Century Fox ’s ( FOXA ) ( IBD ) YES sports network. Charter Communications ( CHTR )  will be the No. 2 cable TV firm if federal regulators approve its acquisitions of  Time Warner Cable ( TWC ) and Bright House Networks. Both Charter and TWC report earnings on Thursday.

Dish, Verizon Spectrum Talks Might Heat Up By Q4, Says Citi

Negotiations between Dish Network ( DISH ) and Verizon Communications ( VZ ) over a radio spectrum sale might heat up after an ongoing government auction of airwaves is over, said Citigroup, which on Monday added the satellite TV broadcaster to its “focus list” of stocks. The Federal Communications Commission in late March began its Broadcast Incentive Auction of airwaves owned by local TV stations. The complex auction is expected to drag on until Q4, says Citigroup. Dish Network, meanwhile, has amassed some 77 MHz of radio spectrum, spending some $15 billion in the process, according to Citi’s estimate. Dish, however, lacks a wireless partner to deliver mobile video services. Citigroup maintains a price target of 94 on Dish stock. Shares in Dish have dropped over 30% since June, to near 50. Dish stock was up 1% in morning trading in the stock market today . Citigroup expects results of the current auction to reinforce the valuation of Dish’s airwaves. “Our target price values (Dish’s) spectrum at $36 billion, or roughly $1.78 per MHz-pop, less than the $2.09 per MHz-pop we believe Verizon would be willing to pay,” said the Citigroup report. “MHz per pop” refers to the spectrum available in a specific market. Citigroup analyst Jason Bazinet says Dish is more likely to sell, rather than “operationalize,” its spectrum by building out a wireless network. Wireless competition has intensified among AT&T ( T ), Verizon, T-Mobile US ( TMUS ) and Sprint ( S ). “Carriers that have filed to participate in the TV auction — like Dish and Verizon — cannot pursue M&A while the auction is underway,” wrote Bazinet. “But, they can enter M&A discussions after the auction ends. Since we expect the auction to end in Q4 2016, we expect the Street to ascribe some sort of M&A likelihood into their valuation calculus for Dish.”

Viacom, Dish Stocks Gain On New Contract, Sling TV Part Of Deal

Dish Network ( DISH ) will make some Viacom ( VIA ) cable networks available on its Sling Web TV service as part of a programming deal that sent shares of both the satellite TV broadcaster and the media company up on Thursday. Viacom stock was up nearly 11% in afternoon trading in the stock market today . Dish Network stock was up 1.5%. Terms of the programming contract renewal, announced Thursday morning, were not disclosed. The deal averted a blackout of 18 Viacom channels on Dish Network’s satellite TV service. A protracted battle might have hurt both companies, analysts say. Viacom stock is down more than 35% in the past 12 months, while Dish stock has shed about 30%. “We view the overhang removal (for Viacom) as significant and believe the deal allows the company more flexibility and time regarding options for a Paramount partial sale stake,” said Benjamin Mogil, an analyst at Stifel, in a research report. Dish stock has dropped amid investor concern over its wireless strategy. Dish has been unable to find a buyer for its wireless radio spectrum or a wireless partner to offer mobile video services. Its online video service Sling, which starts at $20 monthly, has been growing. UBS analyst John Hodulik on Thursday upped his year-end Sling subscriber estimate to 1.5 million from 1.2 million. Dish recently added a separate Sling package featuring add-on channels from 21 st Century Fox ( FOXA ). Sling will offer Comedy Central, Spike, MTV, Nick Jr. and other channels later this year under the new programming deal.