ViaSat (VSAT) Stock Forecast & Price Target

Viasat Inc. reported a 12% year-over-year revenue growth in its IFC sector, indicating strong demand despite challenges related to aircraft deliveries. The company achieved a notable 20% capacity gain through optimization efforts, which has positioned it to enhance profitability while reducing planned capital expenditures for its VS3 launch. Additionally, Viasat generated an operating cash flow of $219 million, representing an $85 million increase from the previous year, underscoring improved efficiency and setting the stage for sustained revenue and EBITDA growth across its segments.

Viasat Inc. has revised its capital expenditure expectations for fiscal year 2025 down from a range of $1.3 to $1.4 billion to $1.1 billion, signaling a shift towards cost efficiency amidst declining revenues. The communication services segment, which constitutes the majority of the company's revenue, posted a year-over-year decline of 6.3% to $820 million, primarily due to intensified competition from Starlink in both the fixed broadband and maritime markets, leading to a decline in EBITDA by 1%. Additionally, the company’s total backlog dropped from $3.7 billion to $3.5 billion, further indicating a potential lack of future revenue growth.