Core Insights - Inmarsat Maritime, a Viasat company, has partnered with Toei Reefer Line Ltd to install NexusWave on their factory vessels to enhance crew and business connectivity [1][3] Group 1: Company Operations - Toei Reefer Line specializes in supplying sashimi-grade tuna and employs trained personnel to operate factory vessels that can process and store cargo at temperatures as low as -55°C [2] - The company prioritizes crew welfare by ensuring access to high-speed internet for seafarers, who often spend extended periods at sea [2][4] Group 2: Technology and Connectivity - Inmarsat's NexusWave integrates multiple connectivity services, including Global Xpress (GX) Ka-band, Low-Earth Orbit (LEO), coastal LTE, and L-band, providing reliable high-speed internet with unlimited data and global coverage [3] - The connectivity solution allows Toei Reefer Line to monitor onboard temperature sensors in real-time, access vessel networks from shore, and deploy cloud-based applications for ship management [3] Group 3: Executive Insights - Shinobu Iijima, IT Director of Toei Reefer Line, emphasized the importance of crew welfare and the increasing demand for connected applications and real-time monitoring as vessels operate like floating factories [4] - Gert-Jan Panken, Vice President Global Sales at Inmarsat Maritime, highlighted that Toei Reefer Line's choice of NexusWave reflects their high expectations for onboard connectivity and operational efficiency [4]

Core Insights - Viasat Inc. has expanded its partnership with Aeromexico to retrofit its Boeing 787 Dreamliner fleet with Viasat's advanced in-flight Wi-Fi solution, which includes 17 aircraft in total [1][3] - The installation will begin with the Boeing 787-8s, followed by the 787-9s, with the first aircraft expected to enter service later in 2025 [2] - Aeromexico aims to enhance passenger experience by providing high-speed connectivity for streaming, browsing, and messaging, utilizing Viasat's high-capacity Ka-band satellite network [3][4] Company and Industry Overview - Viasat has been providing in-flight connectivity to Aeromexico since 2018, and the upgrade reflects Aeromexico's commitment to improving onboard experiences [3] - The partnership is expected to support Aeromexico's goals for customer satisfaction and loyalty, particularly on international routes to major cities [4] - Viasat focuses on serving the aviation market by offering high throughput satellite capacity that can be flexibly adjusted to meet demand [5]

Core Viewpoint - Investors are encouraged to consider ViaSat (VSAT) due to recent improvements in earnings estimates and positive stock momentum [1][7] Estimate Revisions - There is a rising trend in estimate revisions driven by growing analyst optimism regarding ViaSat's earnings prospects, which is expected to positively impact its stock price [2] - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and near-term stock price movements [2] Current-Quarter Estimate - For the current quarter, ViaSat is expected to earn $0.02 per share, reflecting a year-over-year increase of +102.78% [4] - The Zacks Consensus Estimate for ViaSat has risen by 75.49% over the last 30 days, with three estimates moving higher and no negative revisions [4] Current-Year Estimate - For the full year, ViaSat is projected to earn $0.12 per share, representing a change of +101.33% from the previous year [5] - The consensus estimate has increased by 79.69% due to three upward revisions and no negative changes in the past month [5] Zacks Rank - ViaSat has achieved a Zacks Rank 2 (Buy), indicating strong agreement among analysts in revising earnings estimates upward [6] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [6] Stock Performance - ViaSat shares have increased by 12% over the past four weeks, suggesting investor confidence in its earnings growth prospects [7]

Core Viewpoint - ViaSat (VSAT) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - The Zacks Consensus Estimate for ViaSat indicates an expected earnings of $0.12 per share for the fiscal year ending March 2025, reflecting a year-over-year increase of 101.3% [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in ViaSat's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. Recent Trends in Earnings Estimates - Over the past three months, the Zacks Consensus Estimate for ViaSat has increased by 79.7%, indicating a positive trend in earnings revisions [8].

Core Viewpoint - Shares of ViaSat (VSAT) have increased by 12% over the past four weeks, closing at $8.98, with a mean price target of $18.71 indicating a potential upside of 108.4% [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $16.75, where the lowest estimate is $9 (0.2% increase) and the highest is $56 (523.6% increase) [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [7] Earnings Estimates and Analyst Agreement - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, three earnings estimates for the current year have increased, leading to a Zacks Consensus Estimate rise of 79.7% [10] Zacks Rank and Investment Potential - ViaSat holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential upside [11] Caution on Price Targets - While consensus price targets can provide insights, they should not be the sole basis for investment decisions due to historical inaccuracies in predicting actual stock price movements [5][8]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [3] Group 2: Company Analysis - ViaSat (VSAT) - ViaSat (VSAT) has recently shown a four-week price change of 12%, indicating growing investor interest [4] - Over the past 12 weeks, VSAT's stock has gained 29.6%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - VSAT has a beta of 1.35, suggesting it moves 35% higher than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time for investment to capitalize on this momentum [6] - VSAT has received a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.26, indicating it is attractively priced at 26 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides VSAT, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stock picks [9]

Core Viewpoint - Viasat's stock has experienced a significant decline of 18.1% following T-Mobile's announcement of a new satellite communications service in partnership with SpaceX Starlink, which poses a potential threat to Viasat's business model [1][5] Insider Selling - The primary reason for the sell-off in Viasat stock is attributed to insider shareholders selling their stakes rather than the market reaction to T-Mobile's announcement [2] - Three major holders of Viasat stock have filed notifications of significant sales, totaling 11.25 million shares, which represents approximately 8.8% of all outstanding Viasat shares [3][6] - The Ontario Teachers' Pension Plan Board, CPP Investment Board Private Holdings, and a Luxembourg company, Triton Luxtopholding Sarl, each sold 3.75 million shares [6] Market Implications - The simultaneous sales by these major shareholders may indicate a collective concern regarding the competitive threat posed by the T-Mobile and Starlink partnership [4][5] - The significant insider selling raises questions about the confidence of these shareholders in Viasat's future performance, especially given the company's unprofitable status [5]

Aircraft and Connectivity Systems - As of December 31, 2024, the company had approximately 4,030 commercial aircraft and 2,000 business jets equipped with its in-flight connectivity (IFC) systems[196] - The company anticipates an additional 1,570 commercial aircraft will be equipped with IFC systems under existing agreements, although activation is subject to various factors[196] Revenue Streams and Contracts - Approximately 96% of total revenues for the three and nine months ended December 31, 2024, were derived from fixed-price contracts[201] - A significant portion of revenues is derived from contracts with customers for connectivity services, which require advance or recurring monthly payments[206] - U.S. Government contracts often involve performance-based payments (PBPs) or progress payments, with revenue recognized in excess of billings presented as unbilled accounts receivable[208] - Revenue for long-term contracts is recognized over time based on the cost-to-cost measure of progress, which requires management to estimate total costs at completion[209] - The communication services segment includes aviation, government satcom, maritime, and fixed broadband services, contributing to diverse revenue streams[199] Financial Performance - Total revenues for the three months ended December 31, 2024, decreased by $4.8 million to $1,123.8 million, driven by a $16.1 million decrease in service revenues, partially offset by an $11.3 million increase in product revenues[231] - Service revenues accounted for 72% of total revenues in Q3 2024, down from 73% in Q3 2023, while product revenues increased to 28% from 27%[230] - Net income for the three months ended December 31, 2024, was a loss of $13 million, compared to a loss of $11 million in the same period last year[230] - Total revenues increased by $238.7 million to $3,372.5 million, driven by an 11% increase in service revenues to $2,428.4 million[243] Expenses and Cost Management - Operating expenses decreased, with selling, general and administrative (SG&A) expenses down by $33.7 million (12%) to $238.0 million, primarily due to lower support and selling costs[233] - Cost of revenues rose by $169.4 million to $2,247.9 million, with service revenue costs increasing by 15% to $1,576.0 million[244] - Selling, general and administrative expenses decreased by $878.7 million to $761.6 million, primarily due to a prior year satellite impairment loss[245] Acquisitions and Divestitures - The company completed the acquisition of Inmarsat on May 30, 2023, integrating its assets into the communication services segment[194] - The company divested its energy services system integration business on December 18, 2024, as it had minimal strategic synergies with core growth businesses[197] - The company completed the sale of its Link-16 tactical data link business in January 2023 for approximately $1.96 billion in cash[265] Tax and Financial Obligations - The effective tax rate for Q3 2024 was 7%, with an income tax benefit of $11.8 million, compared to a 22% effective tax rate and a $34.5 million benefit in Q3 2023[238] - The effective tax rate for the nine months ended December 31, 2024, was 2%, significantly lower than the 12% rate in the prior year[250] - As of December 31, 2024, total contractual obligations amount to $12.7 billion, with $2.3 billion due in the next 12 months[277] Cash Flow and Indebtedness - Cash provided by operating activities for the first nine months of fiscal year 2025 was $609.7 million, an increase of $153.5 million compared to the prior year period[267] - Cash used in investing activities for the first nine months of fiscal year 2025 was approximately $524.9 million, a decrease of $927.0 million year-over-year[268] - The total outstanding indebtedness as of December 31, 2024, was $7.2 billion, including $442.6 million in 2025 Notes and $1.975 billion in Inmarsat's 9.000% Senior Secured Notes due 2029[275] Workforce and Operational Changes - The company reduced its global workforce by approximately 800 positions, or about 10%, resulting in total costs of approximately $45 million[264] - The company expects to continue investing in IR&D for the development of new generation satellite designs and next-generation satellite network solutions[272] Asset Management and Impairment - Impairment assessments for long-lived assets are conducted when evidence suggests that carrying values may not be recoverable, with no material impairments recorded for the three and nine months ended December 31, 2024 and 2023[221] - Goodwill is tested for impairment annually and when circumstances change, with a qualitative assessment indicating that estimated fair values exceed carrying values as of March 31, 2024[224] Interest Rates and Financial Instruments - The effective interest rate on outstanding borrowings under the 2022 Term Loan Facility is 9.51%, and 10.05% under the 2023 Term Loan Facility as of December 31, 2024[285] - A 10% increase in interest rates would increase interest incurred by approximately $23.7 million over a 12-month period, assuming constant outstanding balances[285] - The company has entered into interest rate cap contracts covering $1.6 billion of the Inmarsat Term Loan Facilities, providing protection from Compound SOFR rates over 2%[286] Research and Development - Independent research and development (IR&D) expenses decreased by $5.0 million (12%) to $36.7 million, primarily due to a reduction in the communication services segment[234] - Independent research and development expenses increased by $4.5 million to $108.7 million, mainly due to a rise in the defense and advanced technologies segment[246]

Core Viewpoint - Viasat, Inc. reported disappointing third-quarter fiscal 2025 results, with both adjusted earnings and revenues falling short of expectations [1] Financial Performance - The company's revenues remained relatively flat year over year at $1.12 billion, missing the consensus estimate by $2 million [5] - Viasat incurred a net loss of $158.4 million, or a loss of $1.23 per share, compared to a net loss of $124.4 million, or a loss of 99 cents per share in the prior-year quarter [3] - Excluding non-recurring items, the non-GAAP net income was $14.7 million, or 11 cents per share, down from $29.7 million, or 24 cents per share in the prior-year period [4] Revenue Breakdown - Product revenues increased to $314.4 million from $303.1 million in the year-ago quarter, while net sales from services decreased to $809.4 million from $825.5 million [5] - Revenues from the Communication Services segment were $820.3 million, down 6% from $874.9 million in the year-ago quarter, primarily due to declines in U.S. fixed broadband services [6] - The Defense and Advanced Technologies segment saw revenues of $303.4 million, up 20% year over year, driven by growth in information security and cyber defense [7] Operational Metrics - The company reported an operating income of $21.2 million compared to an operating loss of $43.9 million in the prior-year quarter [8] - Adjusted EBITDA was $393.3 million, up from $383.1 million in the year-ago quarter, reflecting a 3% growth primarily from the DAT segment [8] Cash Flow and Liquidity - Viasat generated an operating cash flow of $219 million, an increase from $134 million in the prior-year period, driven by decreased working capital and lower cash taxes [9] - As of December 31, 2024, the company had $1.56 billion in cash and cash equivalents, with a net debt of $5.66 billion [9] - Capital expenditures declined 40% year over year to $253 million, mainly due to lower satellite expenditures and ground infrastructure costs [9] Future Outlook - For fiscal 2025, Viasat expects revenues to be flat to slightly up year over year, with adjusted EBITDA from continuing operations predicted to increase by mid-single digits [10] - Management anticipates year-over-year revenue growth and modest adjusted EBITDA growth for fiscal 2026 [11]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $1.12 billion, adjusted EBITDA was $393 million, with a 35% adjusted EBITDA margin, reflecting solid results and progress on capital efficiency initiatives [23][43][44] - Net loss increased to $158 million from $124 million year-over-year, primarily due to a non-cash loss on extinguishment of debt [43] - Operating cash flow improved by over 60% to $219 million, driven by decreased working capital and lower cash taxes [44] Business Line Data and Key Metrics Changes - Communication Services revenue was $820 million, down 6%, impacted by declines in U.S. fixed broadband services, partially offset by strong growth in aviation and government SATCOM [48] - Aviation service revenue increased approximately 12% year-over-year, with 3,950 aircraft in service, up about 130 sequentially [37] - Defense and Advanced Technologies segment saw revenue growth of 20% to $303 million, with awards increasing by 49% [50][52] Market Data and Key Metrics Changes - The backlog was $3.5 billion, down $181 million due to the sale of the Energy Services System Integration business and declining subscribers in the U.S. fixed broadband business [42] - Maritime revenue declined 8% due to legacy L-band offerings and ARPU pressure, while government SATCOM grew by 4% [48][36] Company Strategy and Development Direction - The company aims to sustain and enhance its position in attractive satellite services and technology markets, focusing on capital efficiency and cash generation [9][25] - Key priorities include building franchises, reducing leverage, and generating free cash flow, with a focus on disciplined investment [25][27] - The company is targeting a return to growth in its maritime business in fiscal year 2026, leveraging partnerships and new satellite integrations [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 guidance, with expectations for revenue to be flat to slightly up year-over-year and mid-single-digit adjusted EBITDA growth [54] - The company anticipates free cash flow inflection in the second half of fiscal year 2026 as it moves beyond elevated CapEx related to the ViaSat-3 development [57] - Management highlighted the importance of fiscal 2026 for launching NexusWave and ViaSat-3 satellites to improve trends in maritime and fixed broadband [58] Other Important Information - The company completed the sale of the Energy Services System Integration business, generating approximately $50 million in annual revenue but with minimal strategic synergies [46] - The European Space Agency's agreement with the Mobile Satellite Services Association is expected to support the development of a standards-based LEO constellation [19][20] Q&A Session Summary Question: Update on Flight 2 and Flight 3 launch dates and coverage areas - Management confirmed that Flight 2 is planned for the Americas and Flight 3 for Asia Pacific, with flexibility in satellite locations based on customer demand [68][69] Question: Impact of Flight 3 delay on in-flight connectivity contracts - Management indicated no impact on customer contracts or outlook due to the delay [74] Question: Clarification on fiscal 2026 revenue and EBITDA growth expectations - Management stated that while revenue is expected to grow faster than EBITDA, further details will be provided in the coming months [75][76] Question: Update on DAT asset sales and discussions - Management is focused on reducing debt and unlocking equity value but did not comment on specific transactions [90][91] Question: Framework for monetizing L-band spectrum - Management is evaluating various monetization options for L-band spectrum, balancing legacy business profitability with new market opportunities [94][96] Question: Insights on the Space Force Award for PLEO and potential contracts - Management is packaging LEO services for applications and exploring partnerships with multiple NGSO and LEO providers [129][130]