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Viasat (VSAT) to Power IFC Connectivity in 1000 Delta Air Fleet
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Viasat Inc. (VSAT - Free Report) has secured a prime contract for Ka-band satellite in-flight connectivity (IFC) solutions from Delta Air Lines for an undisclosed amount. The improved IFC services will aim to offer enhanced Internet capabilities with best-in-class in-flight entertainment options to entice customers and will likely contribute to the uptrend in leisure air travel demand.
Per the deal, Delta will use Viasat’s Ka-band IFC solutions in more than 1,000 fleets, including Airbus A330, Airbus 350 and Boeing 767 aircraft. In addition, it will be outfitted in the Airbus 220 and upcoming deliveries of the Boeing 737MAX fleet. The solutions will enable high-quality, high-speed Internet and video streaming services on the personal electronic device of users to make air travel more digitally accessible and seamless.
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, Delta will offer customers 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 rising proportion of high-value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in commercial aircraft like Delta is benefiting the business.
The stock has lost 26.1% over the past year, while the industry has declined 17.2% in the same period. Nevertheless, we are impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Juniper Networks, Inc. (JNPR - Free Report) carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 7% and delivered an earnings surprise of 1.6%, on average, in the trailing four quarters.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence.
InterDigital Inc. (IDCC - Free Report) , carrying a Zacks Rank #2, is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development capabilities, technological know-how and rich industry experience.
InterDigital intends to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position. It has a long-term earnings growth expectation of 11.4% and delivered an earnings surprise of 40.3%, on average, in the trailing four quarters.
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Viasat (VSAT) to Power IFC Connectivity in 1000 Delta Air Fleet
Viasat Inc. (VSAT - Free Report) has secured a prime contract for Ka-band satellite in-flight connectivity (IFC) solutions from Delta Air Lines for an undisclosed amount. The improved IFC services will aim to offer enhanced Internet capabilities with best-in-class in-flight entertainment options to entice customers and will likely contribute to the uptrend in leisure air travel demand.
Per the deal, Delta will use Viasat’s Ka-band IFC solutions in more than 1,000 fleets, including Airbus A330, Airbus 350 and Boeing 767 aircraft. In addition, it will be outfitted in the Airbus 220 and upcoming deliveries of the Boeing 737MAX fleet. The solutions will enable high-quality, high-speed Internet and video streaming services on the personal electronic device of users to make air travel more digitally accessible and seamless.
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, Delta will offer customers 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 rising proportion of high-value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in commercial aircraft like Delta is benefiting the business.
The stock has lost 26.1% over the past year, while the industry has declined 17.2% in the same period. Nevertheless, we are impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1, is likely to benefit from the strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Juniper Networks, Inc. (JNPR - Free Report) carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 7% and delivered an earnings surprise of 1.6%, on average, in the trailing four quarters.
Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence.
InterDigital Inc. (IDCC - Free Report) , carrying a Zacks Rank #2, is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development capabilities, technological know-how and rich industry experience.
InterDigital intends to enhance its licensing revenue base by adding licensees and expanding into adjacent technology areas that align with its intellectual property position. It has a long-term earnings growth expectation of 11.4% and delivered an earnings surprise of 40.3%, on average, in the trailing four quarters.