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Viasat (VSAT) to Power In-Flight Connectivity in Gulfstream G450

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Viasat Inc. (VSAT - Free Report) recently secured the Federal Aviation Administration's (“FAA”) approval for the usage of its Ka-band satellite in-flight connectivity (IFC) solutions in Gulfstream G450 aircraft. The supplementary certificate from FAA is likely to expand the reach of IFC with enhanced Internet capabilities and best-in-class in-flight entertainment options, likely contributing to the uptrend in leisure air travel demand globally.

The Gulfstream G450 aircraft is a large cabin jet that is often deployed on long-distance, international expeditions. The FAA go-ahead is likely to generate incremental revenues for Viasat, with more than 300 Gulfstream G450 aircraft available in the market.

The Ka-band IFC kit can be procured through Viasat's extensive MRO dealer network with service plans for global and regional unlimited coverage starting from $9,995 per month. The entry-level service plans start at $2,795 per month regional plan that delivers Ka-band connectivity at a significant value.

Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demand for data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.

The surging popularity of high-engagement IFC solutions has compelled leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, customers will gain an opportunity to stream all types of video content and seamlessly access Wi-Fi aboard. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.

Viasat’s Satellite Services business is progressing well, with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for a growing proportion of high value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in one of the fastest growing private airline operators like Airshare is benefiting the business.

The stock has lost 37.1% over the past year, while the industry has declined 30.8%.

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Viasat currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Harmonic Inc. (HLIT - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 55.5%, on average, in the trailing four quarters. Earnings estimates for Harmonic for the current year have moved up 48.6% since March 2021.

Harmonic provides video delivery software, products, system solutions and services worldwide. With more than three decades of experience, it has revolutionized cable access networking via the industry's first virtualized cable access solution, enabling cable operators to more flexibly deploy gigabit Internet service to consumers' homes and mobile devices.

AudioCodes Ltd. (AUDC - Free Report) , carrying a Zacks Rank #2, is likely to benefit from the secular tailwinds related to IP-based communications. Incorporated in 1992 and headquartered in Lod, Israel, it offers advanced communications software, products and productivity solutions for the digital workplace. It has a long-term earnings growth expectation of 9%.

AudioCodes aims to leverage its long-term partnership with Microsoft to further strengthen its market position. It is also likely to benefit from its continued focus on high-margin businesses.

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