Viasat's SB-S System Installed in 1,000 Aircraft, Shares Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: seekingalpha
- Installation Milestone: Viasat announced that its SwiftBroadband-Safety (SB-S) communications system is now installed in 1,000 aircraft, reflecting strong adoption by airlines and air traffic control operators, which has driven the company's shares up over 10%.
- Annual Growth Rate: The adoption rate of SB-S has expanded at an average of 42% per year, with Viasat aiming to have the system in service on over 1,200 aircraft by the end of 2026, indicating broad recognition and future growth potential in the aviation sector.
- Safety and Performance Enhancement: The SB-S system provides a direct link between the flight deck, air traffic control, and ground crews, aimed at improving flight safety and operational efficiency, including reduced fuel consumption and lower emissions, thereby enhancing airline operational performance.
- Optimistic Market Outlook: As the SB-S system continues to grow, Viasat's aviation customers are building a durable base of long-term value, which is expected to drive sustainable revenue growth for the company, especially with heightened market sentiment ahead of NASA's Moon Base Event.
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Analyst Views on VSAT
Wall Street analysts forecast VSAT stock price to fall
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 86.690
Low
36.00
Averages
43.80
High
52.00
Current: 86.690
Low
36.00
Averages
43.80
High
52.00
About VSAT
Viasat, Inc. is a global communications company. Its segments include communication services and defense and advanced technologies. The communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers. In addition, this segment includes the development and sale of a wide array of advanced satellite and wireless products and terminals that support or enable the provision of fixed and mobile broadband and narrowband services. The defense and advanced technologies segment develops and offers a diverse array of vertically integrated solutions to government and commercial customers, leveraging its core technical competencies in encryption, cybersecurity, tactical gateways, modems and waveforms. Its services are designed to provide customers with the capacity density, market access, speed, bandwidth and responsiveness they need.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Free Cash Flow Growth: Despite capital expenditures of $298 million, up 20%, the company achieved positive free cash flow of $24 million, indicating a strong balance between investment and cash flow management, enhancing future investment capacity.
- Record Backlog: The company reported a backlog of $4.1 billion, a 15% year-over-year increase, reflecting robust market demand, particularly in the defense and advanced technologies sectors, providing strong support for future revenue.
- Debt Management Improvement: Viasat's net debt to adjusted EBITDA ratio improved to 3.1 times, nearing its target of below 3.0, demonstrating significant progress in reducing financial leverage, which helps boost investor confidence and supports long-term sustainability.
See More
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- Disappointing Earnings: Viasat reported an adjusted loss of $0.02 per share for Q4 of fiscal 2026, with sales of $1.17 billion, both falling short of Wall Street's expectations for a $0.32 profit per share and revenue targets, indicating significant market pressures on the company.
- Severe Market Reaction: Following the disappointing earnings report, Viasat's stock dropped 7% on Friday, with intraday declines reaching 12.9%, reflecting investor concerns about the company's future growth, particularly amid a broader pullback in the space-tech sector.
- Cautious Outlook: The company anticipates mid-single-digit revenue growth for fiscal 2027, and despite strong demand indicators in the space-tech industry, Viasat failed to demonstrate the robust demand ramp investors were hoping for, which could lead to continued stock volatility.
- Industry Impact Factors: The recent explosion of Blue Origin's rocket launch negatively affected Viasat's stock price, undermining investor confidence in the space-tech sector and further contributing to a cautious outlook regarding Viasat's future prospects.
See More
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- Earnings Miss: Viasat reported an adjusted loss of $0.02 per share for Q4 FY2026, with sales of $1.17 billion falling significantly short of Wall Street's expectation of a $0.32 profit per share, leading to a 7% drop in stock price as investor confidence waned.
- Market Reaction: Following the explosion of Blue Origin's rocket launch, the space-tech sector experienced valuation pullbacks, causing Viasat's stock to drop as much as 12.9% during trading, ultimately closing at $80.62, with a market cap of $12 billion.
- Cautious Outlook: Viasat anticipates mid-single-digit revenue growth for FY2027; however, despite strong demand indicators in the space-tech sector, the company's guidance failed to meet investor expectations, potentially leading to increased volatility in its stock.
- Stable EBITDA Projections: The company expects adjusted EBITDA to remain flat or slightly increase, but this outlook did not alleviate market concerns, further intensifying investor apprehension regarding future performance.
See More
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- Tech Stocks Lead Gains: Dell Technologies surged 32% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to between $165 billion and $169 billion, indicating strong market demand and growth potential.
- Positive Economic Data: The May Chicago PMI rose by 13.5 to 62.7, far surpassing expectations of 50.3, marking the fastest expansion pace in 4.25 years, which further bolstered market confidence in stocks.
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See More
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- Financial Performance Overview: Viasat reported $1.2 billion in revenue for Q4 of fiscal 2026, with a net income of $59 million and adjusted EBITDA of $370 million, indicating stability in both revenue and profitability, while generating $24 million in free cash flow, reflecting improved cash management.
- Strategic Cooperation Agreement: The company announced a cooperation agreement with Carronade Capital Management, marking a proactive step in governance and strategy that is expected to enhance shareholder engagement and drive future growth potential.
- ViaSat-3 Progress: Viasat successfully completed all deployments for ViaSat-3 Flight 2 and anticipates Flight 3 to cover the Asia Pacific region within a month, although surface entry is pending FCC authorization, laying the groundwork for future service expansion.
- Future Outlook: Management expects mid-single-digit revenue growth for fiscal 2027, with capital expenditures projected between $950 million and $1 billion; despite ongoing pressures in the fixed broadband sector, government SATCOM business is expected to continue growing, demonstrating the company's efforts to diversify revenue streams.
See More
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- Earnings Highlights: The company reported Q4 FY2026 revenue of $1.17 billion, up 2% YoY, with net income of $58.8 million compared to a loss of $246.1 million last year, largely driven by a $168.1 million gain from the sale of its Navarino investment.
- Future Outlook: Despite achieving a record $4.64 billion in annual revenue, up 3% YoY, the company’s flat EBITDA guidance for FY2027 and nearly $180 million free cash flow expectation disappointed some investors, reflecting caution around near-term profitability growth.
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