CARLSBAD, Calif. - Viasat Inc. (NASDAQ: VSAT), a satellite communications company with a market capitalization of $1.15 billion and impressive revenue growth of 19% over the last twelve months, announced today an agreement with Telesat (Nasdaq and TSX: TSAT) to incorporate Telesat Lightspeed Low Earth Orbit (LEO) Ka-band capacity into its multi-orbit network. This integration aims to elevate connectivity services for Viasat’s mobility and defense sectors by offering fast, reliable, and cost-effective broadband. According to InvestingPro analysis, Viasat appears undervalued at current prices, suggesting potential upside for investors.
The partnership is expected to enhance Viasat’s multi-orbit service offerings, which include in-flight connectivity and entertainment solutions for commercial aviation. While the company’s stock has experienced a significant 46.77% decline over the past year, customers will benefit from improved broadband connections supported by comprehensive Service Level Agreements (SLAs), ensuring reliable service even in high-demand locations such as airports and seaports. InvestingPro data reveals that two analysts have recently revised their earnings upwards for the upcoming period, suggesting potential improvement in the company’s performance.
Telesat Lightspeed’s advanced LEO constellation is designed to bolster Viasat’s ability to deliver differentiated broadband solutions across multiple orbits. The company’s Chairman and CEO, Mark Dankberg, emphasized the importance of multi-orbit resource management techniques in meeting the specific needs of each customer while maintaining cost-effectiveness and expanding coverage.
Viasat’s multi-orbit network, which already serves government, maritime, and energy sectors, is set to encompass all of the company’s growth markets. The agreement with Telesat is a strategic move to support the delivery of next-generation services and drive capital efficiency.
The announcement is based on a press release statement and is part of Viasat’s broader commitment to creating a global communications network that aims to connect everyone and everything. The company, which operates in 24 countries, completed the acquisition of Inmarsat in May 2023, further expanding its capabilities and resources.
Viasat’s forward-looking statements caution that actual results may differ due to various factors such as implementation timelines, satellite performance, and regulatory challenges. The company advises readers to consider the risk factors detailed in its SEC filings when evaluating such statements.
In other recent news, ViaSat Inc. reported strong third-quarter earnings, significantly surpassing analyst expectations. The company posted an adjusted earnings per share of $0.11, beating the anticipated $0.61 loss per share. Revenue for the quarter was $1.12 billion, slightly below the consensus estimate of $1.13 billion but consistent with the previous year’s figures. ViaSat’s Defense and Advanced Technologies segment showed notable growth, with a 20% year-over-year revenue increase to $303 million, compensating for a 6% decline in the Communication Services segment.
Additionally, ViaSat maintained its full-year 2025 revenue and adjusted EBITDA outlook, emphasizing robust performance in aviation and defense sectors. Deutsche Bank recently upgraded ViaSat’s stock rating from Hold to Buy, raising the price target from $13.00 to $15.00. This upgrade reflects the potential for ViaSat to enhance its equity value through strategic asset sales and successful satellite launches. Meanwhile, Cantor Fitzgerald maintained a Neutral rating with a $12.00 price target, noting potential free cash flow positivity in the latter half of fiscal 2026. However, the market reacted negatively to insider selling plans by major investors, leading to a significant drop in ViaSat’s stock price.
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