ViaSat share price surges on the back of strong third quarter
ViaSat, a provider of high-speed internet connections by satellite, reported third-quarter earnings recently that smashed analysts’ expectations and sent its share price soaring. Driving these earnings were a number of new contract awards for the latest generation of the company’s commercial IFC and government networking products. Investors liked what they saw, and the company’s share price jumped by as much as 13% on the day.
ViaSat’s share price has soared by 26% year to date
Source: Yahoo Finance
Here are some numbers. For the third quarter, consensus estimates were that ViaSat would post a loss of 40 cents per share. Last week, the company beat that expectation easily, posting positive earnings of 12 cents per share. Revenue also came in far higher than the Street expected, at $554.7 million against expectations of $485.75 million. Net loss for the quarter also decreased by $14.2 million (58% year on year), reflecting a “significant improvement in operating profits” according to the company’s press release. Perhaps most important is the growth which underlies these positive figures: year to date order awards were up by 39%.
The company’s chairman and CEO, Mark Dankberg, said: “Third quarter revenue and Adjusted EBITDA surged as we executed on our substantial new contract awards for our latest generation commercial IFC and government networking products. Many of those product shipments translate directly or indirectly to ongoing services revenue in future periods. Satellite services revenues reached record levels on an expanding set of vertical markets, and generated significant earnings gains compared to the prior year period, as well as this fiscal year's second quarter. Record year-to-date new contract awards and a favorable book-to-bill ratio, combined with nascent offerings in attractive growth markets, indicate opportunities for sustained revenue and Adjusted EBITDA growth through the balance of fiscal year 2019, into fiscal year 2020, and beyond.”
Dominion holds ViaSat in its Global Trends Managed Fund.
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