Viasat Brings Quality Residential Internet Service To Mexico

Viasat, Inc. (NASDAQ:VSAT) recently communicated that its top-quality Internet service is currently available to residential customers in certain areas of Mexico. The company’s new service utilizes bandwidth from the ViaSat-2, which is considered to be the world’s most advanced high-capacity communications satellite. It is likely to be rolled out across the country in early 2020.

Viasat has been working to help close the digital gap in Mexico as there are millions of people who still don’t have access to a reliable broadband Internet connection. With this move, customers will be able to opt for Internet with speeds in select locations up to 50 Megabits per second. They can enjoy access to social media, streaming content, video call services, and unlimited chat and web browsing.

Viasat has deployed its Community Wi-Fi hotspot service across the country to deliver affordable Internet to remote communities. The company also collaborated with local partners in Mexico on the ‘Internet para Todos’ program. It has received contract from Aeroméxico, the flag carrier airline of Mexico, to bring high-speed in-flight connectivity to a portion of the airline’s commercial fleet. Further, Viasat is ramping up investments in the development of its 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 capacity to allow better consumer choices with an affordable, high-quality, high-speed Internet and video streaming service. Significant market traction of ViaSat-1 and ViaSat-2 satellites, coupled with strategically planned ViaSat-3 satellites, is expected to provide the company with a solid competitive edge over its peers, thereby bolstering growth in the long run.

The ViaSat-3 class of Ka-band satellites is expected to provide unparalleled capabilities in terms of service speed and flexibility for a satellite platform. While the first two satellites will focus on the Americas, and Europe, Middle East and Africa, respectively, the third one is planned for the Asia-Pacific region, completing Viasat’s global service coverage.

In the last reported quarter, the company’s aggregate revenues increased 14.5% year over year to a record high of $592.2 million. The performance was driven by strong revenue growth in both Satellite Services and Government Systems segment. While product revenues totaled $306.8 million, up 9.4% year over year, service revenues grew 20.4% to $285.4 million.

Driven by promising growth outlook for products and services along with new contracts and delivery order agreements, the stock has gained 21.2% compared with the industry’s rally of 19.7% year to date.




The company topped earnings estimates in each of the trailing four quarters, delivering an average beat of 252%. The Zacks Consensus Estimate for its current-year earnings has been revised a whopping 166.7% upward over the past 30 days.

Viasat currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader industry are Qualcomm Incorporated (NASDAQ:QCOM) , Ubiquiti Inc. (NASDAQ:UI) and PCTEL, Inc. (NASDAQ:PCTI) . While Qualcomm and Ubiquiti sport a Zacks Rank #1 (Strong Buy), PCTEL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Qualcomm has long-term earnings growth expectation of 14%.

Ubiquiti has long-term earnings growth expectation of 9.4%.

PCTEL surpassed earnings estimates in each of the trailing four quarters, the average surprise being 150.6%.

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