Viasat Inc. VSAT recently inked an agreement with Japan Airlines to deploy its Aerodocs document management system to support the airline's safety and compliance objectives. The comprehensive product offering is likely to transform the information management strategy of the airline firm and enable it to take more informed, data-driven decisions.
Aerodocs is an aviation-grade document management solution that combines the three key aspects in the document process – editing, distribution and viewing – into a seamless system. It is fast becoming the world’s leading intelligent information platform for aviation with complete control over document management, while offering critical flight reference handbooks, maintenance manuals and operational manuals.
This robust software-based system ensures aviation safety and compliance with a centralized cloud-based repository to edit, track and distribute all operational and non-operational documentation in real-time basis. The system's intuitive approach and unique capabilities enable airlines to manage workflows in a more integrated manner and track read and unread documents, thereby delivering significant value to enhance flight safety.
Viasat’s Satellite Services business is progressing well, with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of solid retail distribution network, which accounts for a growing proportion of high value and high bandwidth subscriber base. Further, growing adoption of in-flight Wi-Fi services in commercial aircrafts is benefiting the Satellite Services business. Additionally, Viasat’s in-flight Internet services are on a roll with commercial flights like Virgin America and The Boeing Company BA increasingly adopting them, driving significant revenue growth over the past few quarters. The commercial in-flight Wi-Fi business continues to make steady gains.
With the surging popularity of high-engagement in-flight connectivity and high passenger engagement, leading airline companies are scouting for new ways to utilize Viasat’s high capacity satellite solutions to maximize passenger satisfaction. The company’ impressive bandwidth productivity sets it apart from conventional and lower-yield satellites providers that run on incumbent business models. Steady contract flow from premier airline firms like Japan Airlines is a further testament to Viasat’s market precedence.
However, the stock has declined 21.8% over the past year due to seasonality in demand, high R&D costs and competitive pressure. The industry it belongs to has rallied 7.8% in the same period.
Viasat currently carries a Zacks Rank #3 (Hold). Some top-ranked stocks in the industry are Qualcomm Incorporated QCOM and PCTEL, Inc. PCTI, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qualcomm has long-term earnings growth expectation of 19.5%. It delivered positive earnings surprise of 10%, on average, in the trailing four quarters, beating estimates on each occasion.
PCTEL surpassed earnings estimates on each occasion in the trailing four quarters, the positive surprise being 150.6%, on average.
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