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Viasat (VSAT) Beats Q4 Earnings Estimates on Higher Revenues
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Viasat, Inc. (VSAT - Free Report) reported mixed fourth-quarter fiscal 2023 results, with the bottom line beating the Zacks Consensus Estimate and the top line missing the same. Lower fixed broadband revenues, constrained activations for new aircraft and retrofits due to delays in aircraft delivery from major suppliers and higher ground network expenses owing to ViaSat-3 Americas launch affected margins during the quarter.
Net Income
Quarterly net income was $ 1,196.8 million or $15.56 per share against a net loss $29.2 million or a loss of 39 cents share in the prior year quarter primarily driven by Link-16 TDL sale. From continuing operations, Viasat incurred a net loss of $ 58.6 million compared with a net loss of $ 45.7 million in the prior-year period. The bottom line beat the Zacks Consensus Estimate of $14.41.
For fiscal 2023, net income was $1,084.8 million or $14.29 per share against a net loss of $15.5 million or a loss of 21 cents per share in fiscal 2022.
Revenues from continuous operations witnessed a 10% growth year over to $666.1 million from $606.7 million in the prior-year quarter. The upside was primarily driven by 34% year-over-year growth in product revenues. The company added Etihad Airways as a new airline partner and also expanded Delta Airlines free Wi-Fi initiative. In the fourth quarter, product revenues totaled $271.4 million. Revenues from service aggregated $394.7 million. However, the top line missed the Zacks Consensus Estimate of $704 million.
For fiscal 2023, revenues from continuous operations totaled $2,556.2 million, up from $2,417.2 million in the previous year.
Satellite Service revenues declined 3% year over year to $295.7 million. Lower net sales from fixed broadband revenue in the United States owing to capacity constraints ahead of ViaSat-3 Americas service launch induce the decline. IFC service revenue grew sequentially but activations for new aircraft remain limited due to aircraft delivery delays from major suppliers. Adjusted EBITDA dropped 13% year over year owing to ground network expenses of ViaSat-3 programs.
Commercial Network saw a 28% growth in revenues year over year to $152.6 million. Solid demand for IFC terminals boosted the net sales gain from this vertical. VSAT delivered 180 IFC terminals in the quarter and 575 in fiscal 2023. The company reported adjusted EBITDA loss of 18 million in the quarter a 53% increase year over year. Higher IFC terminal delivery and reduced research & development costs are the major reasons of the improvement.
The Government Systems segment generated $217.8 million in revenues from continuing operations, up 19% year over year. Adjusted EBIDTA from continuing operations increased 29% to $57.6 million driven by sales growth of cybersecurity products.
Other Details
During the quarter, Viasat reported an operating loss of $72.7 million compared with an operating loss of $48.6 million in the prior-year quarter. Significantly higher general & administrative costs and cost of product revenues led to higher operating loss year over year. Adjusted EBITDA from were $124.2 million compared with $134.4 million reported in the year-ago quarter.
Cash Flow & Liquidity
During the fourth quarter of fiscal 2023, Viasat generated $50 million in operating cash flow compared with $119 million in the year-ago period. As of Mar 31, 2023, cash and cash stood at $1,348.9 million with $2,421.5 million of senior notes and other long-term debt compared with respective figures of $310.5 million and $2,451.2 million.
Outlook
For first quarter fiscal 2024, the management expects higher advertising and ground network expenses and effects of seasonality in government vertical and IFC services. Continued bandwidth constraints in U.S. revenues and adjusted EBITDA are expected to improve sequentially throughout the year. For fiscal 2024, the company anticipates high single digit to low double-digit growth of adjusted EBITDA from continuous operations and improvement in cash flow generation. Capital expenditure is likely to be remain flat in fiscal 2024.
InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%.
It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 7.67%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 11.24%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Meta Platforms Inc. (META - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 15.46%, on average, in the trailing four quarters. Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video-sharing app Instagram and WhatsApp messaging app owing to acquisitions.
Meta is considered to have pioneered the concept of social networking, which is why it enjoys a first mover’s advantage in this market. As developed regions mature, Meta undertakes measures to drive penetration in emerging markets of South East Asia, Latin America and Africa.
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Viasat (VSAT) Beats Q4 Earnings Estimates on Higher Revenues
Viasat, Inc. (VSAT - Free Report) reported mixed fourth-quarter fiscal 2023 results, with the bottom line beating the Zacks Consensus Estimate and the top line missing the same. Lower fixed broadband revenues, constrained activations for new aircraft and retrofits due to delays in aircraft delivery from major suppliers and higher ground network expenses owing to ViaSat-3 Americas launch affected margins during the quarter.
Net Income
Quarterly net income was $ 1,196.8 million or $15.56 per share against a net loss $29.2 million or a loss of 39 cents share in the prior year quarter primarily driven by Link-16 TDL sale. From continuing operations, Viasat incurred a net loss of $ 58.6 million compared with a net loss of $ 45.7 million in the prior-year period. The bottom line beat the Zacks Consensus Estimate of $14.41.
For fiscal 2023, net income was $1,084.8 million or $14.29 per share against a net loss of $15.5 million or a loss of 21 cents per share in fiscal 2022.
Viasat Inc. Price, Consensus and EPS Surprise
Viasat Inc. price-consensus-eps-surprise-chart | Viasat Inc. Quote
Revenues
Revenues from continuous operations witnessed a 10% growth year over to $666.1 million from $606.7 million in the prior-year quarter. The upside was primarily driven by 34% year-over-year growth in product revenues. The company added Etihad Airways as a new airline partner and also expanded Delta Airlines free Wi-Fi initiative. In the fourth quarter, product revenues totaled $271.4 million. Revenues from service aggregated $394.7 million. However, the top line missed the Zacks Consensus Estimate of $704 million.
For fiscal 2023, revenues from continuous operations totaled $2,556.2 million, up from $2,417.2 million in the previous year.
Satellite Service revenues declined 3% year over year to $295.7 million. Lower net sales from fixed broadband revenue in the United States owing to capacity constraints ahead of ViaSat-3 Americas service launch induce the decline. IFC service revenue grew sequentially but activations for new aircraft remain limited due to aircraft delivery delays from major suppliers. Adjusted EBITDA dropped 13% year over year owing to ground network expenses of ViaSat-3 programs.
Commercial Network saw a 28% growth in revenues year over year to $152.6 million. Solid demand for IFC terminals boosted the net sales gain from this vertical. VSAT delivered 180 IFC terminals in the quarter and 575 in fiscal 2023. The company reported adjusted EBITDA loss of 18 million in the quarter a 53% increase year over year. Higher IFC terminal delivery and reduced research & development costs are the major reasons of the improvement.
The Government Systems segment generated $217.8 million in revenues from continuing operations, up 19% year over year. Adjusted EBIDTA from continuing operations increased 29% to $57.6 million driven by sales growth of cybersecurity products.
Other Details
During the quarter, Viasat reported an operating loss of $72.7 million compared with an operating loss of $48.6 million in the prior-year quarter. Significantly higher general & administrative costs and cost of product revenues led to higher operating loss year over year. Adjusted EBITDA from were $124.2 million compared with $134.4 million reported in the year-ago quarter.
Cash Flow & Liquidity
During the fourth quarter of fiscal 2023, Viasat generated $50 million in operating cash flow compared with $119 million in the year-ago period. As of Mar 31, 2023, cash and cash stood at $1,348.9 million with $2,421.5 million of senior notes and other long-term debt compared with respective figures of $310.5 million and $2,451.2 million.
Outlook
For first quarter fiscal 2024, the management expects higher advertising and ground network expenses and effects of seasonality in government vertical and IFC services. Continued bandwidth constraints in U.S. revenues and adjusted EBITDA are expected to improve sequentially throughout the year. For fiscal 2024, the company anticipates high single digit to low double-digit growth of adjusted EBITDA from continuous operations and improvement in cash flow generation. Capital expenditure is likely to be remain flat in fiscal 2024.
Zacks Rank & Stocks to Consider
Viasat currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
InterDigital, Inc. (IDCC - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 170.89%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 579.03%.
It is a pioneer in advanced mobile technologies that enables wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular and wireless 3G, 4G and IEEE 802-related products and networks.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 7.67%, on average, in the trailing four quarters. In the last reported quarter, it pulled off an earnings surprise of 11.24%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Meta Platforms Inc. (META - Free Report) , sporting a Zacks Rank #1, delivered an earnings surprise of 15.46%, on average, in the trailing four quarters. Meta Platforms is the world’s largest social media platform. The company’s portfolio offering evolved from a single Facebook app to multiple apps like photo and video-sharing app Instagram and WhatsApp messaging app owing to acquisitions.
Meta is considered to have pioneered the concept of social networking, which is why it enjoys a first mover’s advantage in this market. As developed regions mature, Meta undertakes measures to drive penetration in emerging markets of South East Asia, Latin America and Africa.