Viasat, Inc. (VSAT - Free Report) recently announced that it has secured an Indefinite Delivery Indefinite Quantity (ID/IQ) contract from the Naval Information Warfare Systems Command (NAVWARSYSCOM). Financial terms of the contract, which involves supply of supplemental units for Viasat’s KOR-24A Small Tactical Terminal (STT), remained undisclosed.
The contract has been designed to expand over time, enabling NAVWARSYSCOM to rapidly provide international defense forces with Viasat’s STT through Foreign Military Sales cases. Markedly, the company’s STT can provide its international military partners with streamlined access to technology capabilities needed to improve mission effectiveness across the battlespace.
Current backlog and pending orders of Viasat’s KOR-24A STTs by the United States and international defense customers underscore the increased demand for multi-channel Link 16 radio at the tactical edge. Viasat earlier stated that it has successfully integrated concurrent multiple reception advancements into its extensive line of Link 16 products to accelerate warfighters’ assured access to mission-critical information.
The global communications company currently has more than 1,500 STT units in service on a wide variety of fixed wing and rotary wing aircraft as well as ground vehicles, expeditionary gateways and maritime vessels across U.S. military services, special operations forces and five international partners to date.
In the last earnings report, the company’s total revenues increased 22.4% year over year to $537 million driven by above 20% growth in both satellite services and government systems segment, which more than offset lower Phonetic terminal deliveries in commercial networks segment. While product revenues totaled $263.6 million, up 20.9% year over year, service revenues grew 23.9% to $273.4 million.
Courtesy of compelling growth outlook for products and services with robust new contracts and delivery order agreements, shares of Viasat have added 27.7% compared with the industry’s growth of 15.9% in the year-to-date period. The company topped earnings estimates in each of the trailing four quarters, delivering an average surprise of 230.6%.
Viasat currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader industry are PCTEL, Inc. (PCTI - Free Report) , T-Mobile US, Inc. (TMUS - Free Report) and ATN International, Inc. (ATNI - Free Report) . While PCTEL sports a Zacks Rank #1 (Strong Buy), T-Mobile and ATN International carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PCTEL surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 146.4%.
T-Mobile surpassed earnings estimates in each of the trailing four quarters, the average surprise being 17.9%.
ATN International surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 128.1%.
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