Viasat (NASDAQ:VSAT) Releases Earnings Results

Viasat (NASDAQ:VSAT) released its quarterly earnings data on Thursday. The communications equipment provider reported ($0.32) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.42) by $0.10, FiscalAI reports. The firm had revenue of $1.18 billion for the quarter, compared to analysts’ expectations of $1.20 billion. Viasat had a negative net margin of 0.64% and a positive return on equity of 1.44%. During the same quarter in the previous year, the company earned $0.09 earnings per share. The company’s revenue for the quarter 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 Stock Up 7.7%

Shares of VSAT stock traded up $4.57 during mid-day trading on Friday, hitting $63.95. The company’s stock had a trading volume of 4,524,128 shares, compared to its average volume of 2,103,408. Viasat has a 52-week low of $29.13 and a 52-week high of $93.03. The business has a 50-day moving average price of $69.95 and a 200 day moving average price of $64.15. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.52 and a current ratio of 1.68. The stock has a market cap of $8.81 billion, a price-to-earnings ratio of -266.46 and a beta of 1.76.

Insider Activity at Viasat

In other Viasat news, Director John Stenbit sold 705 shares of the business’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $66.75, for a total transaction of $47,058.75. Following the completion of the sale, the director directly owned 545 shares in the company, valued at $36,378.75. The trade was a 56.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Benjamin Palmer sold 2,000 shares of the company’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $69.87, for a total transaction of $139,740.00. Following the sale, the senior vice president directly owned 28,087 shares of the company’s stock, valued at approximately $1,962,438.69. This represents a 6.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 51,098 shares of company stock worth $3,593,911 in the last three months. 1.40% of the stock is currently owned by company insiders.

Key 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

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Wall Street Zen lowered shares of Viasat from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Zacks Research raised shares of Viasat from a “strong sell” rating to a “hold” rating in a research note on Wednesday, July 29th. Needham & Company LLC lifted their target price on shares of Viasat from $90.00 to $105.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Raymond James Financial reiterated an “outperform” rating and set a $95.00 target price on shares of Viasat in a report on Friday. Finally, Morgan Stanley set a $95.00 price target on Viasat in a research note on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $93.00.

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.