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Bull of the Day: ViaSat (VSAT)

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ViaSat Inc. (VSAT - Free Report) is a global broadband services and technology company that connects international communites to the internet by offering residential internet service. The company also provides satellite-based Wi-Fi to JetBlue Airways (JBLU - Free Report) and others, as well as communications services for a range of commercial and government customers.

Q4 Results Impressed Wall Street

Recently, shares of ViaSat popped more than 10% in early trading after the company reported better-than-expected fourth-quarter results.

Earnings of $0.04 per share came in well ahead of the Zacks Consensus Estimate of -$0.25 per share. Revenues also surpassed consensus expectations, hitting $557 million for the quarter and increased 27% year-over-year.

Notably, the company’s Satellite Services segment achieved another quarter of record revenue. Sales were $190 million, growing 31% over the year-ago period.

For fiscal 2019, net contract awards were the highest on ViaSat’s history at $2.4 billion, expanding $700 million year-over-year.

"We are energized by the opportunities before us in fiscal year 2020 that are enabled by our unique, highly integrated technology and business approach," said CEO Mark Danberg.

As a result of this good quarter, Needham analyst Richard Valera hiked his price target on VSAT to $100 from $78, saying the satellite communications company came in ahead of projections across the board. Because of things like in-flight service and business contracts, Valera sees revenue and EBITDA growth opportunities in 2020.

VSAT is On the Move

Viasat Inc. Price and Consensus

Viasat Inc. Price and Consensus

Viasat Inc. price-consensus-chart | Viasat Inc. Quote

Year-to-date, shares of VSAT have increased over 50% compared to the S&P 500’s return of roughly 10%.

Earnings estimates have since been rising, and the stock is now a Zacks Rank #1 (Strong Buy).

For the current fiscal year, one analyst has revised their estimate upwards in the past 60 days, and the Zacks Consensus Estimate has jumped eight cents during that same time period. 2021 looks pretty strong too, with earnings expected to jump back into positive territory and grow over 900% year-over-year.

Thanks to bullish guidance, soaring sales and strong product acceleration, the future is looking promising for ViaSat. If you’re an investor searching for a tech stock to add to your portfolio, make sure to keep VSAT on your shortlist.

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