Fri. Dec 8th, 2023
Viasat, Inc. Beats Earnings Expectations in Q2 2024

Viasat, Inc. (NASDAQ:VSAT) reported earnings for the second quarter of fiscal year 2024, exceeding expectations. The reported earnings per share (EPS) was $1.07, while expectations were $0.48.

During the financial conference call, Viasat’s Chairman and CEO, Mark Dankberg, provided an overview of the main points. The company’s performance in the quarter was impressive, with double-digit revenue and adjusted EBITDA growth on a combined operating basis. Dankberg also discussed the two satellite anomalies experienced by Viasat. The financial implications of these anomalies were explained, along with the go-forward plan.

Viasat emphasized its overall strategy and strong positioning for growth in the $108 billion market for commercial and government global mobility. The company has a history of successful entry and development in specific market segments, even against larger competitors. Viasat’s recent sale of the tactical data links business for $2 billion demonstrates its ability to build long-term value and transform targeted market segments.

Guru Graben, Viasat’s President, provided more in-depth information on the quarter’s business highlights and financial results. The aviation business continues to grow steadily, with an increasing fleet of planes, growing passenger engagement, and a strong pipeline of new orders. Information assurance products and antenna systems for secure government data centers are also experiencing significant growth. The maritime sector is growing modestly, with opportunities for further momentum.

Viasat’s outlook for fiscal year 2024 and fiscal year 2025 is positive, with expected continued growth in revenue and adjusted EBITDA. The company aims to reach free cash flow positive in the first half of calendar year 2025. However, the satellite anomalies on ViaSat-3 Flight 1 and Inmarsat 6, Flight 2 were setbacks. Viasat plans to deal with each anomaly, including submitting an insurance claim for the loss of I6F2 and filing an insurance claim for ViaSat-3 Flight 1. The affected antenna on ViaSat-3 Flight 1 has caused a decrease in total throughput, but Viasat is working on compensating for this anomaly optimally.

Overall, Viasat remains optimistic and expects growth driven by the backlog and outlook in global mobility and government sectors. ViaSat-3 Flight 3 has a launch contract scheduled for the fourth quarter of the fiscal year.