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Viasat (VSAT) Misses Earnings and Revenue Estimates in Q4
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Viasat, Inc. (VSAT - Free Report) reported weak fourth-quarter fiscal 2022 results, missing both the bottom-line and top-line estimates.
The weaker-than-expected results were attributable to the increased ground network costs for the upcoming ViaSat-3 American Satellite, increased R&D investments, alterations in the product mix and government product shipments that were affected by supply chain issues. Nevertheless, the company is experiencing growth in the IFC (In-Flight Connectivity) business and has received contributions from the recent RigNet and EBI acquisitions.
Bottom Line
Net loss reported in the quarter was $29.2 million or a loss of 39 cents per share against net income of $7.4 million or 11 cents per share in the prior-year quarter. The loss was primarily due to higher depreciation, non-recurring acquisition-related expenses, acquired intangible amortization and interest expense. The bottom line was wider than the Zacks Consensus Estimate of a loss of 6 cents.
The fiscal 2022 net loss amounted to $15.5 million.
Revenues
Revenues reported in the quarter were $701.7 million compared with $595.8 million in the prior-year quarter, reflecting growth of 17.8%. The growth was backed by successful ViaSat-3 ground network alpha testing over existing satellites, increased U.S. fixed broadband revenue despite reallocation of bandwidth to mobility services and accelerated international subscriber growth driven by residential fixed broadband services in Brazil. Revenues missed the Zacks Consensus Estimate by $20 million.
In fiscal 2022, the company reported record revenues of $2787.6 million, increasing 23.5% year over year.
Segmented Revenues
The Satellite Services generated $304.9 million in revenues, reflecting growth of 32.3% from the prior-year quarter. The increase was backed by commercial IFC service revenue growth, RigNet and EBI acquisitions and higher residential ARPU. Adjusted EBIDTA grew 7% from the prior-year quarter. The growth was impeded by ViaSat-3 ground network activation expenditures and advertising costs.
The Commercial Networks segment generated $119 million in revenues, reflecting growth of 40.5% from the prior-year quarter. The rise was backed by increased deliveries of mobility terminal shipments to several airlines, antenna systems products and enterprise product contributions from RigNet. Adjusted EBIDTA fell 22% from the prior-year quarter. Adjusted EBIDTA was affected by investments in ViaSat-4 satellite payload and mobility terminals.
The Government Systems segment generated $277.8 million in revenues, nearly flat year over year. Service revenues grew 6% due to an increase in revenues from aircraft connectivity services, Blue Force Tracking solutions and cyber security. Adjusted EBIDTA decreased 18% from the prior-year quarter, due to product sales mix and delayed product deliveries.
During the quarter, ViaSat reported an operating loss of $20.8 million against an operating income of $29.1 million in the prior-year quarter. Adjusted EBIDTA in the quarter was $134.4 million compared with $148.1 million in the prior-year quarter. The decrease was due to the higher costs associated with ViaSat-3 service launch and increased investments in R&D.
Cash Flow & Liquidity
During the fiscal fourth quarter, ViaSat generated $119 million in operating cash flow, reflecting a decline of 30% from the prior-year quarter. The decrease primarily reflects a decline in earnings. Operating cash flow for fiscal 2022 was $506 million. Cash and cash equivalents as of Mar 31, 2022, were $310.5 million.
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The long-term earnings growth expectation for Duck Creek is 50%.
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Viasat (VSAT) Misses Earnings and Revenue Estimates in Q4
Viasat, Inc. (VSAT - Free Report) reported weak fourth-quarter fiscal 2022 results, missing both the bottom-line and top-line estimates.
The weaker-than-expected results were attributable to the increased ground network costs for the upcoming ViaSat-3 American Satellite, increased R&D investments, alterations in the product mix and government product shipments that were affected by supply chain issues. Nevertheless, the company is experiencing growth in the IFC (In-Flight Connectivity) business and has received contributions from the recent RigNet and EBI acquisitions.
Bottom Line
Net loss reported in the quarter was $29.2 million or a loss of 39 cents per share against net income of $7.4 million or 11 cents per share in the prior-year quarter. The loss was primarily due to higher depreciation, non-recurring acquisition-related expenses, acquired intangible amortization and interest expense. The bottom line was wider than the Zacks Consensus Estimate of a loss of 6 cents.
The fiscal 2022 net loss amounted to $15.5 million.
Revenues
Revenues reported in the quarter were $701.7 million compared with $595.8 million in the prior-year quarter, reflecting growth of 17.8%. The growth was backed by successful ViaSat-3 ground network alpha testing over existing satellites, increased U.S. fixed broadband revenue despite reallocation of bandwidth to mobility services and accelerated international subscriber growth driven by residential fixed broadband services in Brazil. Revenues missed the Zacks Consensus Estimate by $20 million.
In fiscal 2022, the company reported record revenues of $2787.6 million, increasing 23.5% year over year.
Segmented Revenues
The Satellite Services generated $304.9 million in revenues, reflecting growth of 32.3% from the prior-year quarter. The increase was backed by commercial IFC service revenue growth, RigNet and EBI acquisitions and higher residential ARPU. Adjusted EBIDTA grew 7% from the prior-year quarter. The growth was impeded by ViaSat-3 ground network activation expenditures and advertising costs.
The Commercial Networks segment generated $119 million in revenues, reflecting growth of 40.5% from the prior-year quarter. The rise was backed by increased deliveries of mobility terminal shipments to several airlines, antenna systems products and enterprise product contributions from RigNet. Adjusted EBIDTA fell 22% from the prior-year quarter. Adjusted EBIDTA was affected by investments in ViaSat-4 satellite payload and mobility terminals.
The Government Systems segment generated $277.8 million in revenues, nearly flat year over year. Service revenues grew 6% due to an increase in revenues from aircraft connectivity services, Blue Force Tracking solutions and cyber security. Adjusted EBIDTA decreased 18% from the prior-year quarter, due to product sales mix and delayed product deliveries.
Viasat Inc. Price, Consensus and EPS Surprise
Viasat Inc. price-consensus-eps-surprise-chart | Viasat Inc. Quote
Other Details
During the quarter, ViaSat reported an operating loss of $20.8 million against an operating income of $29.1 million in the prior-year quarter. Adjusted EBIDTA in the quarter was $134.4 million compared with $148.1 million in the prior-year quarter. The decrease was due to the higher costs associated with ViaSat-3 service launch and increased investments in R&D.
Cash Flow & Liquidity
During the fiscal fourth quarter, ViaSat generated $119 million in operating cash flow, reflecting a decline of 30% from the prior-year quarter. The decrease primarily reflects a decline in earnings. Operating cash flow for fiscal 2022 was $506 million. Cash and cash equivalents as of Mar 31, 2022, were $310.5 million.
Zacks Rank & Stocks to Consider
ViaSat currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Duck Creek Technologies, Inc. is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. Current-year estimates have been revised up by 400% over the past year, while that for the next year is up 40%.
The long-term earnings growth expectation for Duck Creek is 50%.
SAP SE (SAP - Free Report) , carrying a Zacks Rank #2 (Buy), is a key pick for stock investors. SAP has a long-term earnings growth expectation of 5.89%.
SAP, with its Rise with SAP solution, was adopted by clients, including Accenture, Canon Production Printing, Exide Industries Limited, NEC Corporation, Qinqin Food, Rising Auto and TELUS.
Silicon Motion Technology (SIMO - Free Report) , carrying Zacks Rank #2, is another great pick for investors. It has a long-term earnings growth expectation of 9%, with an earnings surprise of 3.8% on average in the trailing four quarters.
Silicon Motion has established itself as the leading merchant supplier of client SSD controller to module makers, including most leaders in the United States.