ViaSat (VSAT) Stock Forecast & Price Target

Viasat Inc. has demonstrated a robust revenue growth trajectory, with an impressive 15% year-over-year increase in its In-Flight Connectivity (IFC) segment, attributed to a higher number of aircraft in service and increased average revenue per aircraft. The company’s total backlog reached $3.89 billion, reflecting a 4% year-over-year growth and a significant 9% quarter-over-quarter growth, indicating strong demand and future revenue visibility. Furthermore, Viasat's competitive advantages in the broadband market, along with the expected operational boosts from upcoming F2 and F3 initiatives, position the company favorably for continued revenue and EBITDA growth across its business segments.

Viasat Inc. reported revenue of $1.14 billion, which fell short of consensus estimates by 0.8%, indicating potential challenges in meeting market expectations despite a relatively stable performance in its defense and advanced technologies segment. The decline in segment EBITDA for Defense and Advanced Technologies by 15% year-over-year, driven by increased R&D expenses and weaknesses in certain operational areas, raises concerns about the sustainability of profitability within that segment. Furthermore, the forward revenue growth guidance of low-single-digit percentages is constrained by limited satellite capacity until later service launches, which could hinder the broader communication services segment's financial performance in the near future.