Viasat delivers incredible quarterly earnings, share price surges
Viasat, a provider of high-speed internet via satellite, reported earnings at the end of last week. Investors liked what they saw, sending the share price almost as high as the company’s satellites. As high-speed internet connections become more and more crucial to the emerging infrastructure of a world which relies on them for its retail, banking, communications, and entertainment, the companies that deliver them are in a prime position to prosper. Right now, Viasat looks like a major contender.
Viasat’s share price soared after earnings were released – up 12% in the last five days
Source: Yahoo Finance
Viasat saw impressive growth on both a sequential quarter and year on year basis. The company said it garnered record revenues of $517.5 million – 18% up from the previous quarter, and a massive 32% higher than revenues in the year-ago quarter. Driving these record figures were stronger than ever before new contract awards. The company almost doubled new contracts from the same quarter in the previous year, bringing new contract wins for the first half of fiscal 2019 to more than $1.3 billion.
Lastly, the company saw positive growth in its earnings. Viasat said that adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew to $77.5 million over the three-month period. That’s a 72% increase from the previous quarter, and a 25% increase from the year-ago quarter.
Speaking to both the strength of these results and the company’s future, Viasat’s chairman and CEO, Mark Dankberg, made the following comment in a press release: "Strong sequential and quarter-over-quarter Adjusted EBITDA growth is indicative of the earnings potential as we scale these businesses. Exceptional new order activity helps highlight the momentum we are achieving in our target markets, yielding record levels of backlog, and lending confidence to sustained growth through the balance of the fiscal year and beyond. The near-term momentum behind these more global services reinforces the medium- and long-term potential that will be enabled by our ground-breaking ViaSat-3 constellation."
Dominion holds Viasat in its Global Trends Managed Fund.
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