Here's What Analysts Are Forecasting For Viasat, Inc. (NASDAQ:VSAT) After Its First-Quarter Results
It's been a pretty great week for Viasat, Inc. (NASDAQ:VSAT) shareholders, with its shares surging 14% to US$38.57 in the week since its latest quarterly results. The results weren't stellar - revenue fell 3.7% short of analyst estimates at US$678m, although statutory losses were a relative bright spot. The per-share loss was US$0.29, 17% smaller than the analysts were expecting prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Viasat
Taking into account the latest results, the consensus forecast from Viasat's seven analysts is for revenues of US$3.07b in 2023, which would reflect a notable 9.6% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Viasat forecast to report a statutory profit of US$0.042 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$3.10b and losses of US$0.30 per share in 2023. Although we saw no serious change to the revenue outlook, the analysts have definitely increased their earnings estimates, estimating a profit next year, compared to previous forecasts of a loss. So it seems like the consensus has become substantially more bullish on Viasat.
The consensus price target was unchanged at US$53.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Viasat analyst has a price target of US$85.00 per share, while the most pessimistic values it at US$34.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.5% per year. So it's pretty clear that Viasat is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Viasat to become profitable next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$53.33, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Viasat analysts - going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Viasat (of which 1 shouldn't be ignored!) you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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