Dish Network (DISH: 30.25, -1.06, -3.39%) suffered a 34% decline in first-quarter profits, but the No. 2 U.S. satellite company’s earnings beat estimates as it gained more subscribers than projected.
Shares of Dish rallied nearly 4% in the wake of the earnings report.
The Englewood, Col.-based company said it earned $360.3 million, or 80 cents a share, last quarter, compared with a profit of $549.4 million, or $1.22 a share, a year earlier. Analysts had been calling for EPS of 70 cents.
On the other hand, revenue rose 11% to $3.58 billion, narrowly missing the Street’s view of $3.62 billion.
Meanwhile, Dish said it added 104,000 subscribers last quarter, compared with forecasts for just 62,000 additions, according to Reuters.
In another positive sign, Dish said its churn rate slid to 1.35% from 1.47% the year before. Churn rates measure the rate of cancellation.
"DISH delivered a solid quarter for net subscriber growth and financial performance," CEO Joseph Clayton said in a statement. "I am encouraged by two quarters of net additions, as well as a reduction in churn.”
Shares of Dish rose 3.8% to $32.50 ahead of the opening bell on Monday, putting them on pace to extend their 2012 rally of about 10%.
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