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ViaSat (VSAT) Set for Much Awaited Satellite Launch Tonight
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Premium broadband services and technology firm, ViaSat, Inc. (VSAT - Free Report) , recently announced that its much awaited ViaSat-2 satellite is in the final “launch preparation stage” at the Guiana Space Center in Kourou, French Guiana. Scheduled for launch on Jun 1, the ViaSat-2 satellite, which weighs 6,418 kg, will have one-hour launch window, commencing at 4:45 pm PDT.
The satellite will be launched into geostationary transfer orbit by the Arianespace Ariane 5 ECA launch vehicle. The launch will have three major steps, namely liftoff, separation and acquisition. Built by Boeing Satellite Systems International, ViaSat-2 will be placed at an orbital slot of 69.9° west longitude. ViaSat-2, touted to have twice the bandwidth and seven times more broadband coverage, is a massive improvement over ViaSat-1.
Some other features which make it more powerful than ViaSat-1 include high-capacity connectivity, smaller gateway antenna and twice as many gateways. ViaSat believes that these advanced smaller gateways can help it to place the latest satellites in close proximity of popular internet access points, delivering greater network reliability and security.
ViaSat maintains a leading position in the satellite and wireless communications market. The company has garnered enough economics of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia.
While ViaSat has been keeping busy preparing for the launch of its satellites, the company’s shares have had a dismal run on the bourse. In the last six months, shares have lost 7.7%, in contrast to the Zacks categorized Wireless Equipment industry’s average gain of 4.8%. Furthermore, the company’s earnings estimates moved south over the past couple of months, which indicates bearish analyst sentiments.
It has seen one downward estimate revisions compared with none upward over the last 60 days. This has led the Zacks Consensus Estimate for fiscal 2018 to widen from a loss of 33 cents to a loss of 41 cents. Over the last few quarters, ViaSaat’s Research and Development costs in relation to its satellite launches and other developments have been increasing alarmingly. The company’s EBITDA is under pressure on account of rising costs. For fiscal 2017, ViaSat has incurred $129.6 million in R&D costs, up 68.7% on a year-over-year basis.
Undoubtedly, ViaSat has raised its stake with the ViaSat-2 launch as future market receptivity and resultant profitability remain uncertain. It will be interesting to see whether this Zacks Rank #4 (Sell) stock can jump back on the growth track, and whether ViaSat-2 and the upcoming ViaSat-3 satellites will unlock profits for the company as per their potential.
Stocks to Consider
Some better-ranked stocks in the broader sector include Cohu, Inc. (COHU - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) and NCR Corporation . While Cohu sports a Zacks Rank #1 (Strong Buy), Motorola Solutions and NCR Corporation hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cohu has a striking earnings surprise history, with an average positive surprise of 121.2% over the trailing four quarters, beating estimates all through.
Motorola has a striking earnings surprise history for the last four quarters, having beaten estimates all through for an impressive average of 16.6%.
NCR also has an excellent earnings surprise history, with an average beat of 11% for the trailing four quarters, beating estimates all through.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
ViaSat (VSAT) Set for Much Awaited Satellite Launch Tonight
Premium broadband services and technology firm, ViaSat, Inc. (VSAT - Free Report) , recently announced that its much awaited ViaSat-2 satellite is in the final “launch preparation stage” at the Guiana Space Center in Kourou, French Guiana. Scheduled for launch on Jun 1, the ViaSat-2 satellite, which weighs 6,418 kg, will have one-hour launch window, commencing at 4:45 pm PDT.
The satellite will be launched into geostationary transfer orbit by the Arianespace Ariane 5 ECA launch vehicle. The launch will have three major steps, namely liftoff, separation and acquisition. Built by Boeing Satellite Systems International, ViaSat-2 will be placed at an orbital slot of 69.9° west longitude. ViaSat-2, touted to have twice the bandwidth and seven times more broadband coverage, is a massive improvement over ViaSat-1.
Some other features which make it more powerful than ViaSat-1 include high-capacity connectivity, smaller gateway antenna and twice as many gateways. ViaSat believes that these advanced smaller gateways can help it to place the latest satellites in close proximity of popular internet access points, delivering greater network reliability and security.
ViaSat maintains a leading position in the satellite and wireless communications market. The company has garnered enough economics of scale and scope to serve vast emerging markets in South America, Africa, the Middle East and Western Asia.
While ViaSat has been keeping busy preparing for the launch of its satellites, the company’s shares have had a dismal run on the bourse. In the last six months, shares have lost 7.7%, in contrast to the Zacks categorized Wireless Equipment industry’s average gain of 4.8%. Furthermore, the company’s earnings estimates moved south over the past couple of months, which indicates bearish analyst sentiments.
It has seen one downward estimate revisions compared with none upward over the last 60 days. This has led the Zacks Consensus Estimate for fiscal 2018 to widen from a loss of 33 cents to a loss of 41 cents. Over the last few quarters, ViaSaat’s Research and Development costs in relation to its satellite launches and other developments have been increasing alarmingly. The company’s EBITDA is under pressure on account of rising costs. For fiscal 2017, ViaSat has incurred $129.6 million in R&D costs, up 68.7% on a year-over-year basis.
Undoubtedly, ViaSat has raised its stake with the ViaSat-2 launch as future market receptivity and resultant profitability remain uncertain. It will be interesting to see whether this Zacks Rank #4 (Sell) stock can jump back on the growth track, and whether ViaSat-2 and the upcoming ViaSat-3 satellites will unlock profits for the company as per their potential.
Stocks to Consider
Some better-ranked stocks in the broader sector include Cohu, Inc. (COHU - Free Report) , Motorola Solutions, Inc. (MSI - Free Report) and NCR Corporation . While Cohu sports a Zacks Rank #1 (Strong Buy), Motorola Solutions and NCR Corporation hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cohu has a striking earnings surprise history, with an average positive surprise of 121.2% over the trailing four quarters, beating estimates all through.
Motorola has a striking earnings surprise history for the last four quarters, having beaten estimates all through for an impressive average of 16.6%.
NCR also has an excellent earnings surprise history, with an average beat of 11% for the trailing four quarters, beating estimates all through.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>