Viasat (NASDAQ:VSAT) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Viasat (NASDAQ:VSAT) posted its earnings results on Thursday. The communications equipment provider reported ($0.32) EPS for the quarter, beating 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%. During the same quarter in the prior year, the company posted $0.09 earnings per share. The firm’s quarterly 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 Trading Down 11.1%

Viasat stock traded down $7.41 during trading hours on Thursday, hitting $59.38. The company had a trading volume of 4,284,651 shares, compared to its average volume of 2,485,564. The firm has a market cap of $8.18 billion, a P/E ratio of -247.42 and a beta of 1.76. The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.52 and a current ratio of 1.68. Viasat has a 1 year low of $29.13 and a 1 year high of $93.03. The company has a 50-day moving average price of $69.95 and a two-hundred day moving average price of $64.15.

Insiders Place Their Bets

In other news, SVP Craig Miller sold 22,500 shares of the firm’s stock in a transaction that occurred on 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 transaction, the senior vice president directly owned 41,570 shares of the company’s stock, valued at approximately $2,917,798.30. This trade represents a 35.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John Stenbit sold 705 shares of Viasat stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $66.75, for a total transaction of $47,058.75. Following the sale, the director directly owned 545 shares of the company’s stock, valued at $36,378.75. This represents a 56.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 274,640 shares of company stock worth $21,615,868. 1.40% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Needham & Company LLC boosted their target price on Viasat from $90.00 to $105.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Morgan Stanley set a $95.00 price objective on shares of Viasat in a research report on Monday, August 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of Viasat in a research note on Thursday, October 15th. Zacks Research upgraded Viasat from a “strong sell” rating to a “hold” rating in a research report on Wednesday, July 29th. Finally, Wall Street Zen lowered Viasat from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. One investment 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 stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $90.67.

Trending Headlines about Viasat

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’ expected $0.42 loss. Revenue also increased 3.4% year over year. Earnings report
• Neutral Sentiment: Senior Vice President Craig Miller disclosed selling 22,500 shares for about $1.58 million, reducing his direct holding by 35.12%. The filing does not establish a reason for the sale. SEC filing
• Negative Sentiment: Fiscal Q2 revenue was $1.18 billion, below the $1.20 billion FactSet estimate, while the company’s net loss widened. The loss per share also compared unfavorably with earnings of $0.09 in the year-ago quarter, raising concerns despite the adjusted EPS beat. Viasat Q2 results Revenue estimate comparison

Viasat Company Profile

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.