Earnings Preview: Dish Network's 3Q report

OVERVIEW: Dish Network Corp., the nation's second-largest satellite operator with nearly 14 million customers, has been lagging behind other pay-TV operators.

The Englewood, Colo.-based company has posted higher churn--a measure of cancellations--as well as weaker subscriber results and "middling" financial performance, according to a research note by Sanford Bernstein analyst Craig Moffett.

In the second quarter, Dish's subscriber growth fell below 2 percent, a record low.

Dish also struggles with getting more revenue out of each subscriber. Unlike DirecTV Group Inc., Dish focuses on cost-conscious customers that might downgrade or cancel services in a slow economy.

After Jan. 31, Dish will lose its distribution deal with AT&T Inc., which could put more pressure on subscriber growth.

BY THE NUMBERS: Analysts on average are forecasting a 58-cent-per-share profit for Dish on revenue of $2.90 billion, according to a survey by Thomson Reuters.

ANALYST TAKE: In spite of its challenges, Dish can count on some catalysts that could boost the third quarter. Moffett said the company has marketed its services "far more aggressively" in the quarter than they have in the past.

Also, the third quarter still will include any increased business from its AT&T partnership. When the phone company reported its third-quarter earnings, it disclosed a net subscriber gain for Dish.

Another plus is that Dish's products have improved, especially in high-definition.