Core Viewpoint - Shares of ViaSat (VSAT) have increased by 12% over the past four weeks, closing at $8.98, with a mean price target of $18.71 indicating a potential upside of 108.4% [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $16.75, where the lowest estimate is $9 (0.2% increase) and the highest is $56 (523.6% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [7] Earnings Estimates and Analyst Agreement - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, three earnings estimates for the current year have increased, leading to a Zacks Consensus Estimate rise of 79.7% [10] Zacks Rank and Investment Potential - ViaSat holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential upside [11] Caution on Price Targets - While consensus price targets can provide insights, they should not be the sole basis for investment decisions due to historical inaccuracies in predicting actual stock price movements [5][8]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Company Analysis - ViaSat (VSAT) - ViaSat (VSAT) has recently shown a four-week price change of 12%, indicating growing investor interest [4] - Over the past 12 weeks, VSAT's stock has gained 29.6%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - VSAT has a beta of 1.35, suggesting it moves 35% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time for investment to capitalize on this momentum [6] - VSAT has received a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.26, indicating it is attractively priced at 26 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides VSAT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stock picks [9]

Core Viewpoint - Viasat's stock has experienced a significant decline of 18.1% following T-Mobile's announcement of a new satellite communications service in partnership with SpaceX Starlink, which poses a potential threat to Viasat's business model [1][5] Insider Selling - The primary reason for the sell-off in Viasat stock is attributed to insider shareholders selling their stakes rather than the market reaction to T-Mobile's announcement [2] - Three major holders of Viasat stock have filed notifications of significant sales, totaling 11.25 million shares, which represents approximately 8.8% of all outstanding Viasat shares [3][6] - The Ontario Teachers' Pension Plan Board, CPP Investment Board Private Holdings, and a Luxembourg company, Triton Luxtopholding Sarl, each sold 3.75 million shares [6] Market Implications - The simultaneous sales by these major shareholders may indicate a collective concern regarding the competitive threat posed by the T-Mobile and Starlink partnership [4][5] - The significant insider selling raises questions about the confidence of these shareholders in Viasat's future performance, especially given the company's unprofitable status [5]

Aircraft and Connectivity Systems - As of December 31, 2024, the company had approximately 4,030 commercial aircraft and 2,000 business jets equipped with its in-flight connectivity (IFC) systems[196] - The company anticipates an additional 1,570 commercial aircraft will be equipped with IFC systems under existing agreements, although activation is subject to various factors[196] Revenue Streams and Contracts - Approximately 96% of total revenues for the three and nine months ended December 31, 2024, were derived from fixed-price contracts[201] - A significant portion of revenues is derived from contracts with customers for connectivity services, which require advance or recurring monthly payments[206] - U.S. Government contracts often involve performance-based payments (PBPs) or progress payments, with revenue recognized in excess of billings presented as unbilled accounts receivable[208] - Revenue for long-term contracts is recognized over time based on the cost-to-cost measure of progress, which requires management to estimate total costs at completion[209] - The communication services segment includes aviation, government satcom, maritime, and fixed broadband services, contributing to diverse revenue streams[199] Financial Performance - Total revenues for the three months ended December 31, 2024, decreased by $4.8 million to $1,123.8 million, driven by a $16.1 million decrease in service revenues, partially offset by an $11.3 million increase in product revenues[231] - Service revenues accounted for 72% of total revenues in Q3 2024, down from 73% in Q3 2023, while product revenues increased to 28% from 27%[230] - Net income for the three months ended December 31, 2024, was a loss of $13 million, compared to a loss of $11 million in the same period last year[230] - Total revenues increased by $238.7 million to $3,372.5 million, driven by an 11% increase in service revenues to $2,428.4 million[243] Expenses and Cost Management - Operating expenses decreased, with selling, general and administrative (SG&A) expenses down by $33.7 million (12%) to $238.0 million, primarily due to lower support and selling costs[233] - Cost of revenues rose by $169.4 million to $2,247.9 million, with service revenue costs increasing by 15% to $1,576.0 million[244] - Selling, general and administrative expenses decreased by $878.7 million to $761.6 million, primarily due to a prior year satellite impairment loss[245] Acquisitions and Divestitures - The company completed the acquisition of Inmarsat on May 30, 2023, integrating its assets into the communication services segment[194] - The company divested its energy services system integration business on December 18, 2024, as it had minimal strategic synergies with core growth businesses[197] - The company completed the sale of its Link-16 tactical data link business in January 2023 for approximately $1.96 billion in cash[265] Tax and Financial Obligations - The effective tax rate for Q3 2024 was 7%, with an income tax benefit of $11.8 million, compared to a 22% effective tax rate and a $34.5 million benefit in Q3 2023[238] - The effective tax rate for the nine months ended December 31, 2024, was 2%, significantly lower than the 12% rate in the prior year[250] - As of December 31, 2024, total contractual obligations amount to $12.7 billion, with $2.3 billion due in the next 12 months[277] Cash Flow and Indebtedness - Cash provided by operating activities for the first nine months of fiscal year 2025 was $609.7 million, an increase of $153.5 million compared to the prior year period[267] - Cash used in investing activities for the first nine months of fiscal year 2025 was approximately $524.9 million, a decrease of $927.0 million year-over-year[268] - The total outstanding indebtedness as of December 31, 2024, was $7.2 billion, including $442.6 million in 2025 Notes and $1.975 billion in Inmarsat's 9.000% Senior Secured Notes due 2029[275] Workforce and Operational Changes - The company reduced its global workforce by approximately 800 positions, or about 10%, resulting in total costs of approximately $45 million[264] - The company expects to continue investing in IR&D for the development of new generation satellite designs and next-generation satellite network solutions[272] Asset Management and Impairment - Impairment assessments for long-lived assets are conducted when evidence suggests that carrying values may not be recoverable, with no material impairments recorded for the three and nine months ended December 31, 2024 and 2023[221] - Goodwill is tested for impairment annually and when circumstances change, with a qualitative assessment indicating that estimated fair values exceed carrying values as of March 31, 2024[224] Interest Rates and Financial Instruments - The effective interest rate on outstanding borrowings under the 2022 Term Loan Facility is 9.51%, and 10.05% under the 2023 Term Loan Facility as of December 31, 2024[285] - A 10% increase in interest rates would increase interest incurred by approximately $23.7 million over a 12-month period, assuming constant outstanding balances[285] - The company has entered into interest rate cap contracts covering $1.6 billion of the Inmarsat Term Loan Facilities, providing protection from Compound SOFR rates over 2%[286] Research and Development - Independent research and development (IR&D) expenses decreased by $5.0 million (12%) to $36.7 million, primarily due to a reduction in the communication services segment[234] - Independent research and development expenses increased by $4.5 million to $108.7 million, mainly due to a rise in the defense and advanced technologies segment[246]

Core Viewpoint - Viasat, Inc. reported disappointing third-quarter fiscal 2025 results, with both adjusted earnings and revenues falling short of expectations [1] Financial Performance - The company's revenues remained relatively flat year over year at $1.12 billion, missing the consensus estimate by $2 million [5] - Viasat incurred a net loss of $158.4 million, or a loss of $1.23 per share, compared to a net loss of $124.4 million, or a loss of 99 cents per share in the prior-year quarter [3] - Excluding non-recurring items, the non-GAAP net income was $14.7 million, or 11 cents per share, down from $29.7 million, or 24 cents per share in the prior-year period [4] Revenue Breakdown - Product revenues increased to $314.4 million from $303.1 million in the year-ago quarter, while net sales from services decreased to $809.4 million from $825.5 million [5] - Revenues from the Communication Services segment were $820.3 million, down 6% from $874.9 million in the year-ago quarter, primarily due to declines in U.S. fixed broadband services [6] - The Defense and Advanced Technologies segment saw revenues of $303.4 million, up 20% year over year, driven by growth in information security and cyber defense [7] Operational Metrics - The company reported an operating income of $21.2 million compared to an operating loss of $43.9 million in the prior-year quarter [8] - Adjusted EBITDA was $393.3 million, up from $383.1 million in the year-ago quarter, reflecting a 3% growth primarily from the DAT segment [8] Cash Flow and Liquidity - Viasat generated an operating cash flow of $219 million, an increase from $134 million in the prior-year period, driven by decreased working capital and lower cash taxes [9] - As of December 31, 2024, the company had $1.56 billion in cash and cash equivalents, with a net debt of $5.66 billion [9] - Capital expenditures declined 40% year over year to $253 million, mainly due to lower satellite expenditures and ground infrastructure costs [9] Future Outlook - For fiscal 2025, Viasat expects revenues to be flat to slightly up year over year, with adjusted EBITDA from continuing operations predicted to increase by mid-single digits [10] - Management anticipates year-over-year revenue growth and modest adjusted EBITDA growth for fiscal 2026 [11]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $1.12 billion, adjusted EBITDA was $393 million, with a 35% adjusted EBITDA margin, reflecting solid results and progress on capital efficiency initiatives [23][43][44] - Net loss increased to $158 million from $124 million year-over-year, primarily due to a non-cash loss on extinguishment of debt [43] - Operating cash flow improved by over 60% to $219 million, driven by decreased working capital and lower cash taxes [44] Business Line Data and Key Metrics Changes - Communication Services revenue was $820 million, down 6%, impacted by declines in U.S. fixed broadband services, partially offset by strong growth in aviation and government SATCOM [48] - Aviation service revenue increased approximately 12% year-over-year, with 3,950 aircraft in service, up about 130 sequentially [37] - Defense and Advanced Technologies segment saw revenue growth of 20% to $303 million, with awards increasing by 49% [50][52] Market Data and Key Metrics Changes - The backlog was $3.5 billion, down $181 million due to the sale of the Energy Services System Integration business and declining subscribers in the U.S. fixed broadband business [42] - Maritime revenue declined 8% due to legacy L-band offerings and ARPU pressure, while government SATCOM grew by 4% [48][36] Company Strategy and Development Direction - The company aims to sustain and enhance its position in attractive satellite services and technology markets, focusing on capital efficiency and cash generation [9][25] - Key priorities include building franchises, reducing leverage, and generating free cash flow, with a focus on disciplined investment [25][27] - The company is targeting a return to growth in its maritime business in fiscal year 2026, leveraging partnerships and new satellite integrations [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 guidance, with expectations for revenue to be flat to slightly up year-over-year and mid-single-digit adjusted EBITDA growth [54] - The company anticipates free cash flow inflection in the second half of fiscal year 2026 as it moves beyond elevated CapEx related to the ViaSat-3 development [57] - Management highlighted the importance of fiscal 2026 for launching NexusWave and ViaSat-3 satellites to improve trends in maritime and fixed broadband [58] Other Important Information - The company completed the sale of the Energy Services System Integration business, generating approximately $50 million in annual revenue but with minimal strategic synergies [46] - The European Space Agency's agreement with the Mobile Satellite Services Association is expected to support the development of a standards-based LEO constellation [19][20] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launch dates and coverage areas - Management confirmed that Flight 2 is planned for the Americas and Flight 3 for Asia Pacific, with flexibility in satellite locations based on customer demand [68][69] Question: Impact of Flight 3 delay on in-flight connectivity contracts - Management indicated no impact on customer contracts or outlook due to the delay [74] Question: Clarification on fiscal 2026 revenue and EBITDA growth expectations - Management stated that while revenue is expected to grow faster than EBITDA, further details will be provided in the coming months [75][76] Question: Update on DAT asset sales and discussions - Management is focused on reducing debt and unlocking equity value but did not comment on specific transactions [90][91] Question: Framework for monetizing L-band spectrum - Management is evaluating various monetization options for L-band spectrum, balancing legacy business profitability with new market opportunities [94][96] Question: Insights on the Space Force Award for PLEO and potential contracts - Management is packaging LEO services for applications and exploring partnerships with multiple NGSO and LEO providers [129][130]

40+ years Enduring value 76 Countries around the world $4.3B FY24 Revenue 21 Operational satellites in space 7K+ Global employees 10 Satellites under development Continuing to serve customers who rely on our services while innovating new generations of technology Global team working closely with our customers and partners Greater capacity and seamless connectivity solutions High-capacity network that delivers a consistent, high-quality connectivity experience on land, in the air, and at sea Q3 FY2025 Earnin ...

For the quarter ended December 2024, ViaSat (VSAT) reported revenue of $1.12 billion, down 0.4% over the same period last year. EPS came in at -$1.23, compared to -$0.99 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.13 billion, representing a surprise of -0.21%. The company delivered an EPS surprise of -35.16%, with the consensus EPS estimate being -$0.91.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

ViaSat (VSAT) came out with a quarterly loss of $1.23 per share versus the Zacks Consensus Estimate of a loss of $0.91. This compares to loss of $0.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -35.16%. A quarter ago, it was expected that this provider of satellite and wireless networking technology would post a loss of $0.56 per share when it actually produced a loss of $1.07, delivering a surprise of -91.07%.Over the la ...

CARLSBAD, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ:VSAT), a global leader in satellite communications, today published its third quarter fiscal year 2025 financial results in a letter to shareholders, which, along with webcast slides, is now posted to the Investor Relations section of Viasat's website. As previously announced, Viasat will host a conference call today, Thursday, February 6, 2025 at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time. The dial in numbers for the conference a ...