Viasat Stock Drops 11.9% Despite New Contract with Lockheed Martin
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Source: Fool
- Stock Volatility: Viasat's stock fell 11.9% by midday Monday without an obvious catalyst, indicating market concerns about its future performance, which could undermine investor confidence.
- New Contract Announcement: Viasat revealed a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for two NOAA C-130J Hurricane Hunter aircraft, enhancing its application potential in meteorological monitoring.
- Potential for Expansion: The contract mentions the possibility of additional aircraft, suggesting Viasat could secure more orders in the future, although the initial contract value remains undisclosed, necessitating close attention to its financial implications.
- Analyst Rating Upgrade: Needham analyst raised Viasat's price target to $90, implying a 25% upside over the next 12 months, highlighting the growth potential of its spectrum assets and defense business, despite the company’s six consecutive years of losses.
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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: 80.620
Low
36.00
Averages
43.80
High
52.00
Current: 80.620
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.
Viasat Stock Drops 11.9% Despite New Contract with Lockheed Martin
- Stock Volatility: Viasat's stock fell 11.9% by midday Monday without an obvious catalyst, indicating market concerns about its future performance, which could undermine investor confidence.
- New Contract Announcement: Viasat revealed a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for two NOAA C-130J Hurricane Hunter aircraft, enhancing its application potential in meteorological monitoring.
- Potential for Expansion: The contract mentions the possibility of additional aircraft, suggesting Viasat could secure more orders in the future, although the initial contract value remains undisclosed, necessitating close attention to its financial implications.
- Analyst Rating Upgrade: Needham analyst raised Viasat's price target to $90, implying a 25% upside over the next 12 months, highlighting the growth potential of its spectrum assets and defense business, despite the company’s six consecutive years of losses.
See More
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- Zoom Platform Rebound: Zoom Communications saw its shares jump over 11% after Anthropic, an early investor, confidentially filed for an IPO with regulators, suggesting positive market expectations for investment returns and potentially enhancing Zoom's market position.
- Veeva Systems Strong Performance: Veeva Systems shares rose nearly 9% ahead of its first-quarter earnings report on Wednesday, with FactSet consensus expecting earnings of $2.14 per share and revenue of $857.7 million, both within the company's prior guidance range, indicating business stability.
- Humana Guidance Reaffirmation: Humana's shares increased by 8% after reaffirming its full-year adjusted earnings guidance of at least $9 per share, surpassing the FactSet consensus of $8.93, reflecting the company's strong performance and growth potential in the health insurance market.
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Viasat Partners with Lockheed Martin for NOAA Satellite Communications
- Technology Integration: Viasat has been selected by Lockheed Martin to provide satellite communications technology for NOAA's hurricane hunter aircraft, marking the first formal line-fit integration of its Hybrid SATCOM Approach Technology on the C130J platform, enhancing the aircraft's communication capabilities.
- Future Enhancements: The HSA platform is designed to accommodate multiple antenna apertures, enabling multi-network and multi-orbit connectivity, which allows for future enhancements to the C-130J aircraft, increasing its potential applications in meteorological monitoring.
- Contract Details: Although the financial terms of the contract with Lockheed Martin were not disclosed, this collaboration is expected to contribute to mid-single-digit revenue growth for Viasat, further solidifying its position in the satellite communications market.
- Financial Outlook: Viasat anticipates approximately $180 million in free cash flow for fiscal 2027, indicating the company's financial health and growth potential, particularly through partnerships with major defense contractors.
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 Stock Drops 11.9% Despite New Contract with Lockheed Martin
- Stock Volatility: Viasat's stock fell 11.9% by midday Monday without an obvious catalyst, indicating market concerns about its future performance, which could undermine investor confidence.
- New Contract Announcement: Viasat revealed a subcontract with Lockheed Martin to provide high-bandwidth Hybrid SATCOM technology for two NOAA C-130J Hurricane Hunter aircraft, enhancing its application potential in meteorological monitoring.
- Potential for Expansion: The contract mentions the possibility of additional aircraft, suggesting Viasat could secure more orders in the future, although the initial contract value remains undisclosed, necessitating close attention to its financial implications.
- Analyst Rating Upgrade: Needham analyst raised Viasat's price target to $90, implying a 25% upside over the next 12 months, highlighting the growth potential of its spectrum assets and defense business, despite the company’s six consecutive years of losses.
See More
MGM Resorts Shares Surge 16% on Acquisition Proposal
- Acquisition Proposal Surge: MGM Resorts International shares surged 16% following an acquisition offer from Barry Diller's People Inc. at $48.30 per share in cash, indicating strong market optimism that could alter the company's control structure.
- Zoom Platform Rebound: Zoom Communications saw its shares jump over 11% after Anthropic, an early investor, confidentially filed for an IPO with regulators, suggesting positive market expectations for investment returns and potentially enhancing Zoom's market position.
- Veeva Systems Strong Performance: Veeva Systems shares rose nearly 9% ahead of its first-quarter earnings report on Wednesday, with FactSet consensus expecting earnings of $2.14 per share and revenue of $857.7 million, both within the company's prior guidance range, indicating business stability.
- Humana Guidance Reaffirmation: Humana's shares increased by 8% after reaffirming its full-year adjusted earnings guidance of at least $9 per share, surpassing the FactSet consensus of $8.93, reflecting the company's strong performance and growth potential in the health insurance market.
See More
Viasat Partners with Lockheed Martin for NOAA Satellite Communications
- Technology Integration: Viasat has been selected by Lockheed Martin to provide satellite communications technology for NOAA's hurricane hunter aircraft, marking the first formal line-fit integration of its Hybrid SATCOM Approach Technology on the C130J platform, enhancing the aircraft's communication capabilities.
- Future Enhancements: The HSA platform is designed to accommodate multiple antenna apertures, enabling multi-network and multi-orbit connectivity, which allows for future enhancements to the C-130J aircraft, increasing its potential applications in meteorological monitoring.
- Contract Details: Although the financial terms of the contract with Lockheed Martin were not disclosed, this collaboration is expected to contribute to mid-single-digit revenue growth for Viasat, further solidifying its position in the satellite communications market.
- Financial Outlook: Viasat anticipates approximately $180 million in free cash flow for fiscal 2027, indicating the company's financial health and growth potential, particularly through partnerships with major defense contractors.
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
