ViaSat (VSAT) Stock Forecast & Price Target

Viasat Inc. has experienced robust revenue growth in its communication services segment, achieving a 12% year-over-year increase, which is significant given the constraints from aircraft deliveries. The company's optimization efforts have yielded a 20% capacity gain, enabling it to reduce planned capital expenditures for the VS3 launch while enhancing profitability through improved efficiency. Further bolstered by a notable operating cash flow increase to $219 million, reflecting an $85 million rise from the previous year, Viasat is well-positioned to drive steady revenue and EBITDA growth across its business segments, despite recent launch challenges.

Viasat Inc. has revised its capital expenditure expectations for FY25 down to $1.1 billion, indicating a shift towards cost efficiency amid financial pressures. The communication services segment, which is the primary revenue generator for the company, reported a revenue decline of 6.3% year-over-year, significantly affected by competitive pressures from Starlink in both broadband and maritime markets. Additionally, the total backlog decreased from $3.7 billion to $3.5 billion, highlighting challenges in securing new business, and overall management has expressed dissatisfaction with the settlement offers related to the Ligado bankruptcy, further complicating the firm's financial outlook.