Viasat (NASDAQ:VSAT) Posts Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Viasat reported an adjusted loss of $0.32 per share, narrower than analysts’ expected $0.42 loss. Revenue rose 3.4% year over year to $1.18 billion, though it missed the $1.20 billion estimate and the company’s net loss widened.
• The company raised its FY2027 free-cash-flow outlook to more than $225 million, with capital expenditures projected at $850 million–$900 million as peak ViaSat-3 investment passes. Its Defense and Advanced Technologies revenue grew 20% in Q2, and Viasat expects mid-to-high-teens growth for the full year.
• ViaSat-3 capacity is now in service, supporting improved customer speeds and usage, but Communication Services revenue fell 3% and aviation faces future pressure. Viasat expects aviation revenue to decline in FY2028 and said customer changes could eventually affect 15%–20% of aviation revenue.

Viasat (NASDAQ:VSAT - Get Free Report) announced 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. Viasat had a positive return on equity of 1.44% and a negative net margin of 0.64%. The company's quarterly revenue was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.09 earnings per share.

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

Shares of NASDAQ VSAT traded down $7.41 during mid-day trading on Thursday, reaching $59.38. The company's stock had a trading volume of 4,284,651 shares, compared to its average volume of 2,485,564. The firm has a market capitalization of $8.18 billion, a PE ratio of -247.42 and a beta of 1.76. The company has a debt-to-equity ratio of 1.23, a current ratio of 1.68 and a quick ratio of 1.52. The stock has a fifty day moving average of $69.95 and a two-hundred day moving average of $64.15. Viasat has a 52 week low of $29.13 and a 52 week high of $93.03.

Wall Street Analyst Weigh In

VSAT has been the topic of several analyst reports. Wall Street Zen downgraded shares of Viasat from a "hold" rating to a "sell" rating in a 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. Morgan Stanley set a $95.00 price objective on shares of Viasat in a research note on Monday, August 10th. Weiss Ratings restated a "sell (d-)" rating on shares of Viasat in a research report on Thursday, October 15th. Finally, Needham & Company LLC raised their price objective on shares of Viasat from $90.00 to $105.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $90.67.

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’ 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

Insider Activity

In related news, CFO Garrett L. Chase sold 4,000 shares of the business's stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $58.86, for a total value of $235,440.00. Following the transaction, the chief financial officer directly owned 47,534 shares of the company's stock, valued at approximately $2,797,851.24. The trade was a 7.76% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John P. Stenbit sold 705 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $66.75, for a total value of $47,058.75. Following the completion of the transaction, the director owned 545 shares of the company's stock, valued at $36,378.75. The trade was a 56.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 274,640 shares of company stock valued at $21,615,868 in the last three months. 1.40% of the stock is currently owned by insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.