Viasat has revealed its plan to implement job cuts as part of its strategy to concentrate its investments in areas with high growth potential. The company anticipates incurring charges of $45 million, mostly in the latter half of 2024, due to these layoffs.
Despite experiencing a significant decline in Viasat’s stock value over the past three months, with a sharp drop of 40.2%, the announcement of job cuts resulted in a premarket rise of more than 1%. This increase contrasts with the recent 6.1% decline in the S&P 500 SPX index.
According to InvestingPro’s real-time data and insights, Viasat Inc. (VSAT) presents a mixed outlook. With an adjusted market capitalization of $2250M and a Price/Book ratio of 0.42 as of Q1 2024, VSAT is trading at a relatively low multiple, indicating a potential opportunity for investors seeking undervalued stocks.
However, InvestingPro Tips highlights that VSAT is burdened by a significant debt load and has not achieved profitability in the past twelve months. This may have contributed to the sharp decline in the company’s stock value over the past year. On a positive note, Viasat has experienced accelerated revenue growth, and analysts foresee both sales and net income growth for the company in the near future. This suggests the potential for resilience and recovery.
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