Viasat's Spectrum Value Recognized Amid Space Market Optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 06 2024
0mins
Source: Coinmarketcap
Viasat Inc's stock rose by 5.33% as it crossed above the 5-day SMA, reflecting positive investor sentiment in the space sector.
New Street highlighted Viasat's ownership of the world's largest MSS spectrum band, which is currently undervalued in its share price. As the satellite broadband market expands, this spectrum position is expected to gain significant value, contributing to the bullish outlook for Viasat amidst growing interest in space stocks.
The recognition of Viasat's spectrum value suggests potential for future growth as the demand for satellite connectivity increases, positioning the company favorably in the evolving space economy.
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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.
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- 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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- 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.
- Oil Price Decline Benefits Stocks: Crude oil prices fell over 1% to a five-week low due to a preliminary agreement between the US and Iran, easing inflation concerns and supporting the upward trend in the stock market.
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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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- Stock Pullback: Viasat's stock fell over 8% on Friday to approximately $79.44 as investors locked in profits after a remarkable 132.59% YTD gain, significantly outperforming the S&P 500's 10.49% return.
- 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.
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- Analyst Optimism: Analysts remain positive, with B. Riley raising its price target on Viasat from $94 to $106 while maintaining a Buy rating, citing strong momentum in defense, spectrum, and satellite services, indicating confidence in the company's future prospects.
See More
Viasat Reports Q4 Earnings with Record Backlog and Revenue Growth
- Financial Performance Boost: Viasat's Q4 revenue reached $1.2 billion, reflecting a 2% year-over-year increase, with net income at $59 million, an improvement of $305 million primarily due to gains from equity investment sales and reduced expenses, showcasing effective financial management.
- 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
Viasat's Q4 Earnings Miss Expectations, Stock Declines
- 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
Viasat's Earnings Miss Expectations, Stock Drops
- 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
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Strong Market Performance: The S&P 500 rose by 0.22%, the Dow Jones Industrial Average increased by 0.72%, and the Nasdaq 100 climbed by 0.36%, with all three indices reaching new all-time highs, reflecting market confidence in economic recovery.
- 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.
- Oil Price Decline Benefits Stocks: Crude oil prices fell over 1% to a five-week low due to a preliminary agreement between the US and Iran, easing inflation concerns and supporting the upward trend in the stock market.
See More
Viasat Q4 Fiscal 2026 Earnings Call Insights
- 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
Viasat Stock Drops 8% After Strong YTD Gains and Earnings Report
- Stock Pullback: Viasat's stock fell over 8% on Friday to approximately $79.44 as investors locked in profits after a remarkable 132.59% YTD gain, significantly outperforming the S&P 500's 10.49% return.
- 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.
- Analyst Optimism: Analysts remain positive, with B. Riley raising its price target on Viasat from $94 to $106 while maintaining a Buy rating, citing strong momentum in defense, spectrum, and satellite services, indicating confidence in the company's future prospects.
See More
