Viasat (NASDAQ:VSAT – Get Free Report) issued its quarterly earnings data on Thursday. The communications equipment provider reported ($0.32) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.42) by $0.10, FiscalAI reports. Viasat had a positive return on equity of 1.44% and a negative net margin of 0.64%. The company had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter last year, the business posted $0.09 earnings per share. The firm’s revenue was up 3.4% compared to the same quarter last year.
Here are the key takeaways from Viasat’s conference call:
- Free cash flow outlook improved: Viasat now expects more than $225 million in FY2027 free cash flow and $850 million–$900 million in capital expenditures, as it says the peak investment phase for ViaSat-3 is behind it. Adjusted EBITDA is still expected to be approximately flat year over year.
- Defense and Advanced Technologies is growing strongly: DAT revenue rose 20% in Q2, and the company expects mid-to-high-teens growth for the full year. Backlog increased 20% year over year, and Viasat expects FY2027 awards of about $2 billion, up from $1.6 billion last year.
- ViaSat-3 capacity is entering service: Flights 2 and 3 are in service, with customers reporting improved speeds and usage. Viasat expects the added capacity to support commercial and government services and help shift the business toward monetization.
- Communication Services and aviation face headwinds: Communication Services revenue fell 3% in Q2, with weakness in fixed broadband and maritime. Viasat expects aviation revenue to decline in FY2028 and said recent customer announcements could ultimately affect 15%–20% of aviation revenue, though the impact is not expected to be abrupt.
Viasat Price Performance
VSAT stock traded up $4.57 during mid-day trading on Friday, hitting $63.95. 4,524,128 shares of the stock were exchanged, compared to its average volume of 2,422,388. The stock has a market capitalization of $8.81 billion, a price-to-earnings ratio of -88.82 and a beta of 1.76. The business has a fifty day moving average price of $69.77 and a 200 day moving average price of $64.26. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.68 and a quick ratio of 1.52. Viasat has a 12 month low of $29.13 and a 12 month high of $93.03.
Insider Buying and Selling at Viasat
In other Viasat news, CFO Garrett L. Chase sold 4,000 shares of the company’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $74.90, for a total transaction of $299,600.00. Following the completion of the sale, the chief financial officer directly owned 26,239 shares in the company, valued at $1,965,301.10. This represents a 13.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Craig Miller sold 22,500 shares of the company’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $70.19, for a total transaction of $1,579,275.00. Following the sale, the senior vice president owned 41,570 shares of the company’s stock, valued at approximately $2,917,798.30. The trade was a 35.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 51,098 shares of company stock valued at $3,593,911 over the last ninety days. Insiders own 1.40% of the company’s stock.
More Viasat News
Here are the key news stories impacting Viasat this week:
- Positive Sentiment: Viasat reported an adjusted loss of $0.32 per share, narrower than analysts’ $0.42 loss estimate, and revenue grew 3.4% year over year. The earnings-per-share beat may be encouraging, although sales fell short of forecasts. Earnings report
- Positive Sentiment: Viasat joined an Open Satellite Memorandum of Understanding focused on direct-to-device connectivity. The initiative could create strategic opportunities in satellite-to-phone services, though the article headline provides no details on near-term financial impact. Open Satellite MoU article
- Neutral Sentiment: SVP Craig Miller sold 22,500 shares for about $1.58 million, reducing his direct stake by 35.12%. The disclosure does not state why he sold, so the transaction alone does not establish a change in his outlook. Insider sale report
- Negative Sentiment: Fiscal second-quarter revenue of $1.18 billion missed the $1.20 billion analyst estimate, and the net loss widened. The company also moved from year-ago earnings of $0.09 per share to a loss, tempering the adjusted EPS beat. Quarterly results coverage
- Negative Sentiment: A report said VSAT shares broke below their 200-day moving average, a technical sign that may weigh on investor sentiment. Technical analysis report
Analysts Set New Price Targets
Several analysts have weighed in on VSAT shares. Needham & Company LLC raised their price target on Viasat from $90.00 to $105.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Weiss Ratings reissued a “sell (d-)” rating on shares of Viasat in a report on Thursday, October 15th. Wall Street Zen cut shares of Viasat from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Zacks Research upgraded shares of Viasat from a “strong sell” rating to a “hold” rating in a research report on Wednesday, July 29th. Finally, Morgan Stanley set a $95.00 target price on shares of Viasat in a research note on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $93.00.
View Our Latest Analysis on Viasat
About Viasat
Viasat, Inc is a communications technology company that provides satellite-based connectivity and related services to commercial, government and consumer customers. The company’s offerings include high-speed broadband, satellite communications, network services and connectivity solutions designed for locations where terrestrial networks may be limited or unavailable.
Viasat serves the aviation, maritime, residential broadband, enterprise and government markets. Its services support in-flight internet for commercial and business aircraft, connectivity for ships and offshore operations, broadband access for homes and communities, and secure communications for government and defense customers.
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