Viasat Misses Fourth Quarter Earnings Expectations, Shares Plummet 11%

Introduction: Viasat, Inc. (NASDAQ: VSAT), a leading satellite communications company, recently reported its fourth-quarter earnings, which fell short of expectations, leading to a sharp decline in its share price by 11%.

Key Points:

1. Earnings Miss:

   • Viasat posted an adjusted EPS of -$0.24 for the fourth quarter, significantly below the analyst consensus of $0.47.
   • The substantial earnings shortfall was unexpected and contributed to the market's negative reaction, resulting in an 11% decline in Viasat's share price.

2. Revenue Performance:

   • Despite the earnings miss, Viasat's revenue for the quarter stood at $1.15 billion, surpassing the consensus estimate of $1.1 billion.
   • The revenue figure reflects robust demand for Viasat's satellite services, indicating continued growth in the satellite communications sector.

3. Guidance for Fiscal Year 2025:

   • Viasat anticipates adjusted EBITDA growth in the low to mid-single digits for fiscal year 2025.
   • However, the company expects satellite services revenue to decline by a low to mid-single-digit percentage, signaling a cautious outlook for the upcoming fiscal year.

4. Strategic Initiatives and Inmarsat Acquisition:

   • Viasat's management emphasized the completion of the Inmarsat acquisition as a key step toward building a sustainable future in space communications.
   • Despite the challenges faced in the fourth quarter, the company remains focused on its long-term strategy and believes that the integration of Inmarsat's resources will enhance its ability to deliver high-quality, reliable, and secure communications globally.

Conclusion: Viasat's fourth-quarter earnings miss and cautious guidance for fiscal year 2025 have prompted a negative market reaction, leading to an 11% decline in its share price. However, the company's strong revenue performance underscores continued demand for its satellite services. With strategic initiatives in place and the completion of the Inmarsat acquisition, Viasat remains committed to its long-term growth strategy in the space communications sector.

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