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Viasat (VSAT) Inks US Naval Deals for Improved Connectivity
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Viasat Inc. (VSAT - Free Report) recently inked two contracts with the U.S. Navy for improved connectivity for sailors and their families in Guam and Poland. The twin contracts with the Navy Exchange Service Command will enable the defense personnel to enjoy high-quality personal-use telecommunications at bases in Unaccompanied Housing, Morale, Welfare and Recreation facilities and Navy lodging facilities.
Per the agreement, Viasat will upgrade the existing network infrastructure at Naval Station Guam and Andersen Air Force Base by replacing the legacy copper-based network with a fiber network. This, in turn, will improve the speed and resiliency of the Internet, Wi-Fi, Voice and TV services at the facilities. In addition, the company will improve the Wi-Fi network at Naval support facility in Redzikowo, Poland.
Viasat enjoys a leading position in the satellite and wireless communications market. With the rapid proliferation of the smartphone market and usage of mobile broadband, the user demand for coverage speed and quality has increased, which in turn is fueling the demand for network tuning and optimization to maintain high data traffic. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service. Encouragingly, Viasat’s blue-chip customer base, which comprises the U.S. Department of Defense, civil agencies, allied foreign governments, satellite network integrators and large communications service providers and enterprises, adds to its strength. Currently, the company’s Government Systems segment is acting as a major profit churner. Viasat is eyeing opportunities to extend broadband satellite mobility to rotary-wing aircraft, as it is a large addressable market that can emerge as a key profit churner.
In addition, the company is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will boast nearly 10 times the bandwidth capacity of ViaSat-2. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service.
Viasat’s Satellite Services business is progressing well, with key metrics including ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for an increasing proportion of high-value and high-bandwidth subscriber base. Further, the rising adoption of in-flight Wi-Fi services in commercial aircraft is proving conducive to the growth of the Satellite Services business.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demands of data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.
The stock has gained 38.9% over the past year compared with the industry’s rally of 20.3% in the same period. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Clearfield delivered an earnings surprise of 50.8%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 181.2%.
Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. It has a long-term earnings growth expectation of 15.3% and delivered an earnings surprise of 11.2%, on average, in the trailing four quarters.
Earnings estimates for the current year for the stock have moved up 35.4% over the past year. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.
Sierra Wireless, Inc. carries a Zacks Rank #2. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 16.3%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
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Viasat (VSAT) Inks US Naval Deals for Improved Connectivity
Viasat Inc. (VSAT - Free Report) recently inked two contracts with the U.S. Navy for improved connectivity for sailors and their families in Guam and Poland. The twin contracts with the Navy Exchange Service Command will enable the defense personnel to enjoy high-quality personal-use telecommunications at bases in Unaccompanied Housing, Morale, Welfare and Recreation facilities and Navy lodging facilities.
Per the agreement, Viasat will upgrade the existing network infrastructure at Naval Station Guam and Andersen Air Force Base by replacing the legacy copper-based network with a fiber network. This, in turn, will improve the speed and resiliency of the Internet, Wi-Fi, Voice and TV services at the facilities. In addition, the company will improve the Wi-Fi network at Naval support facility in Redzikowo, Poland.
Viasat enjoys a leading position in the satellite and wireless communications market. With the rapid proliferation of the smartphone market and usage of mobile broadband, the user demand for coverage speed and quality has increased, which in turn is fueling the demand for network tuning and optimization to maintain high data traffic. The company attracts millions of U.S. consumers and enterprises with its high-quality broadband service. Encouragingly, Viasat’s blue-chip customer base, which comprises the U.S. Department of Defense, civil agencies, allied foreign governments, satellite network integrators and large communications service providers and enterprises, adds to its strength. Currently, the company’s Government Systems segment is acting as a major profit churner. Viasat is eyeing opportunities to extend broadband satellite mobility to rotary-wing aircraft, as it is a large addressable market that can emerge as a key profit churner.
In addition, the company is ramping up investments in the development of its revolutionary ViaSat-3 broadband communications platform, which will boast nearly 10 times the bandwidth capacity of ViaSat-2. The ViaSat-3 platform will help form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service.
Viasat’s Satellite Services business is progressing well, with key metrics including ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for an increasing proportion of high-value and high-bandwidth subscriber base. Further, the rising adoption of in-flight Wi-Fi services in commercial aircraft is proving conducive to the growth of the Satellite Services business.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivaled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demands of data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.
The stock has gained 38.9% over the past year compared with the industry’s rally of 20.3% in the same period. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
A better-ranked stock in the industry is Clearfield, Inc. (CLFD - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearfield delivered an earnings surprise of 50.8%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 181.2%.
Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. It has a long-term earnings growth expectation of 15.3% and delivered an earnings surprise of 11.2%, on average, in the trailing four quarters.
Earnings estimates for the current year for the stock have moved up 35.4% over the past year. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.
Sierra Wireless, Inc. carries a Zacks Rank #2. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 16.3%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.