TSAT

Telesat and Viasat Partnership: Telesat has secured a multi-year contract with Viasat for its Lightspeed Low Earth Orbit (LEO) services, which will enhance broadband connectivity for aviation, maritime, enterprise, and defense markets, starting in late 2027.

Advanced Connectivity Features: Telesat Lightspeed is designed to provide high-speed, low-latency global connectivity, ensuring secure communications for defense users and offering airlines the ability to deliver superior onboard experiences through advanced technology integration.

Contract Announcement: Viasat has signed a multi-year contract with Telesat to integrate Telesat Lightspeed Low Earth Orbit services into its portfolio for various markets, including aviation and defense.

Market Impact: Following the announcement, Telesat's shares fell over 6.6% in pre-market trading, despite the potential benefits of the partnership for accessing advanced satellite networks.

Viasat's Multi-Orbit Network Expansion: Viasat Inc. has partnered with Telesat to integrate Telesat Lightspeed LEO Ka-band capacity into its multi-orbit network, aiming to enhance connectivity services for mobility and defense sectors with high reliability and performance.

Commitment to Advanced Connectivity Solutions: The collaboration is part of Viasat's strategy to provide cost-effective, resilient broadband solutions while ensuring equitable access to space resources and supporting regulatory frameworks for sustainable multi-orbit infrastructure.

Conference Call Announcement: Telesat will hold a conference call on March 27, 2025, at 10:30 a.m. EDT to discuss its financial results for the year ending December 31, 2024, hosted by CEO Daniel S. Goldberg and CFO Andrew Browne.

Telesat's Innovations: The company is recognized as a leading satellite operator, focusing on innovative connectivity solutions through its Telesat Lightspeed Low Earth Orbit (LEO) satellite network, aimed at enhancing global satellite connectivity with high-capacity and secure links.

Partnership Announcement: Telesat and Orange have formed a strategic partnership to provide satellite connectivity, with Telesat Lightspeed Landing Station located at Orange's teleport in France, enhancing services for businesses and telecom operators.

Service Features: The collaboration will integrate Telesat's Low Earth Orbit (LEO) services into Orange's offerings, providing reliable, low-latency connectivity solutions designed to meet telco standards and improve access in underserved regions.

Telesat and QEST Partnership: Telesat has signed a development contract with QEST for a new Flat Panel Antenna (FPA) designed for the Telesat Lightspeed network, aiming to enhance aeronautical connectivity with high reliability and low power consumption.

Innovative Technology for Aviation: The collaboration is expected to deliver data rates exceeding 1 Gbps, positioning Telesat's network as a competitive solution in the aviation market, leveraging QEST's advanced antenna technology.

Short Interest Trends: The report highlights significant changes in short interest for various high-short-float stocks, with 1-800-Flowers.com and Telesat experiencing notable increases in bearish positions, while Oklo shows a decline in short interest despite rising stock prices.

Market Performance Overview: During the trading period covered, major indices like the S&P 500 and Nasdaq saw slight gains, while individual stocks such as Children’s Place and Luminar displayed volatility, reflecting mixed investor sentiment amidst changing market conditions.

Short Interest Trends: The report highlights significant changes in short interest for various stocks, noting increases for AST SpaceMobile, Telesat, and SoundHound AI, while Archer Aviation and Recursion Pharmaceuticals saw declines in their short interest percentages.

Market Performance Context: During the four-day trading session ending January 23, major indices like the S&P 500 and Nasdaq Composite experienced gains, providing a backdrop for the discussed stock movements and short interest fluctuations.

Surge in Space Stocks: Following President Trump's inauguration, space stocks experienced significant gains, with companies like Redwire Corp and Mynaric seeing increases of over 48%, driven by optimism for private sector opportunities in space exploration.

Trump's Vision for Space: In his speech, Trump emphasized the U.S. commitment to space exploration, including plans for Mars colonization, which resonated positively with investors and analysts, particularly after his nomination of Jared Isaacman as a potential NASA administrator.

Telesat and MDA Space Milestone: Telesat and MDA Space have successfully completed the Preliminary Design Review (PDR) for the Telesat Lightspeed low Earth orbit satellite constellation, marking a significant step towards detailed engineering and manufacturing phases.

Future Plans and Manufacturing Expansion: The companies plan to begin launching satellites in 2026, with MDA Space expanding its satellite manufacturing facility in Montreal to support the production of the new satellites.

Industry Overview: The Zacks Satellite and Communication industry is experiencing growth due to increased access to space technology, driven by geopolitical competition and rising defense budgets. Companies like Globalstar, Iridium Communications, and Telesat Corp. are positioned to benefit from this trend despite facing macroeconomic challenges such as inflation and supply chain issues.

Company Highlights: Globalstar reported a 25% revenue increase, focusing on expanding its 5G services; Telesat's revenues declined by 20.9% but has a strong backlog; Iridium saw a 5% rise in service revenues, bolstered by demand in IoT and government projects, while maintaining a cautious outlook on equipment sales for 2024.

Short Interest Trends: The report highlights significant changes in short interest for various stocks, noting increases for Sphere Entertainment, Telesat, MGP Ingredients, Groupon, and Hertz Global, while Kura Sushi experienced a decline in short interest as its stock price rose significantly.

Market Performance Context: During the trading period covered, major indices like the S&P 500 and Nasdaq Composite saw declines, with specific stocks mentioned experiencing varied movements in their share prices amidst changing investor sentiment and earnings reports.

Financial Performance: Telesat reported a consolidated revenue of $138 million for Q3 2024, a decrease of 20.9% compared to the same period in 2023, with an Adjusted EBITDA margin of 69.5%. The company also secured funding agreements totaling $2.54 billion from the Canadian government for its Telesat Lightspeed LEO satellite constellation.

Operational Highlights: Despite the revenue decline, Telesat's net income improved to $68 million from a loss of $4 million year-over-year, largely due to favorable foreign exchange impacts. The company is on track to meet or exceed its 2024 financial guidance, expecting revenues between $545 million and $565 million.

Collaboration Announcement: Telesat has signed a Memorandum of Understanding with Airbus to integrate its Lightspeed low earth orbit network into Airbus's HBCplus satellite connectivity solutions, enhancing inflight connectivity services.

Strategic Importance: This partnership aims to meet the growing demand for low latency connectivity and supports Airbus's multi-orbit strategy for global coverage, while Telesat focuses on delivering high-capacity links with fibre-like speeds.

Contract Announcement: Telesat has awarded Intellian a contract to design and install 127 Gateway Antenna Systems for its Lightspeed Low Earth Orbit (LEO) satellite constellation, enhancing connectivity services globally by 2027.

Technological Advancements: The 4-meter Gateway Antenna System is engineered for high performance in tracking LEO satellites and durability in harsh conditions, reducing maintenance costs and improving RF efficiency.

New Appointment: Telesat has appointed retired Brigadier-General G. Michael Adamson as Senior Director of Defence Strategy and Business Development to enhance its government market strategy for the Telesat Lightspeed low earth orbit (LEO) network, focusing on Canada, the U.S., and allied nations.

Strategic Goals: Adamson aims to leverage his military experience to build partnerships with government and defense organizations, advancing satellite communication systems for NATO and NORAD modernization efforts while addressing critical SATCOM demands.

Telesat's Stock Performance: Telesat TSAT shares rose 10.3% to $12.07, driven by a C$2.54 billion funding from the Canadian and Quebec governments for its Lightspeed LEO broadband satellite project, which aims to enhance internet access and create jobs in Canada.

Future Projections: The company anticipates capital expenditures of $1 billion to $1.4 billion in 2024, with the first satellites expected to launch in mid-2026, while facing a projected quarterly loss of $0.16 per share and a revenue decline of 20.2% year-over-year.

Funding for Telesat Lightspeed: Telesat has secured funding agreements totaling $2.54 billion from the Government of Canada and the Government of Quebec to develop its Telesat Lightspeed Low Earth Orbit (LEO) broadband satellite constellation, which aims to enhance global internet connectivity and support economic growth in Canada.

Impact on Employment and Economy: The project is expected to create thousands of jobs, boost investment in the Canadian economy, and modernize satellite communications technology, with the first satellites planned for launch in mid-2026.

Q2 2024 Financial Results: Telesat reported consolidated revenues of $152 million and adjusted EBITDA of $103 million for Q2 2024, with a decrease in revenue attributed to reduced services and lower rates from a long-term customer. The company reaffirmed its full-year guidance, expecting revenues between $545 million and $565 million.

Progress on Lightspeed Program: Telesat is optimistic about concluding funding agreements with the Canadian government by the end of summer and has made significant progress in executing the Lightspeed program, including onboarding 90% of suppliers and increasing headcount by nearly 20%.

Telesat's Financial Performance: Telesat reported a 15.2% year-over-year decline in consolidated revenue to C$152.44 million, but this was above expectations. The company also saw a significant drop in net income and adjusted EBITDA, while EPS exceeded consensus estimates.

2024 Outlook and Strategic Focus: Telesat anticipates revenues between C$545 million and C$565 million for 2024, with a strong emphasis on maximizing Adjusted EBITDA and cash flow while advancing the Telesat Lightspeed project. TSAT shares rose by 8.48% following the earnings report.