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

Viasat (NASDAQ:VSAT) posted its quarterly earnings data on Thursday. The communications equipment provider reported ($0.32) earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $1.20 billion. During the same period in the prior year, the business earned $0.09 earnings per share. Viasat’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 Performance

VSAT stock traded up $4.57 during midday trading on Friday, hitting $63.95. The 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 company has a current ratio of 1.68, a quick ratio of 1.52 and a debt-to-equity ratio of 1.23. The stock has a 50-day simple moving average of $69.95 and a 200 day simple moving average of $64.15. The firm has a market capitalization of $8.81 billion, a price-to-earnings ratio of -266.46 and a beta of 1.76.

Insider Buying and Selling at Viasat

In other news, CFO Garrett Chase sold 4,000 shares of the stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $58.86, for a total value of $235,440.00. Following the completion of the transaction, the chief financial officer owned 47,534 shares in the company, valued at approximately $2,797,851.24. This represents a 7.76% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director John Stenbit sold 705 shares of the firm’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 transaction, the director directly 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. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 51,098 shares of company stock worth $3,593,911. Corporate insiders own 1.40% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have weighed in on VSAT shares. 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 report on Wednesday, July 29th. Morgan Stanley set a $95.00 price objective on shares of Viasat in a research report on Monday, August 10th. Needham & Company LLC increased their target price on shares of Viasat from $90.00 to $105.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, Raymond James Financial reissued an “outperform” rating and set a $95.00 target price on shares of Viasat in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $93.00.

Viasat News Roundup

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

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.