ViaSat (VSAT) Surges 7.5%: Is This an Indication of Further Gains?
ViaSat (VSAT) shares ended the last trading session 7.5% higher at $16.80. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 31.8% loss over the past four weeks.
Viasat has offered an update of key operational metrics and reiterated its guidance for fiscal 2024 and fiscal 2025. With the realization of synergistic benefits from the successful integration of Inmarsat over the next fiscal, the company expects to reach the inflection point of sustainable positive free cash flow in the first half of 2025, rather than the second half as anticipated earlier.
In fiscal 2025, Viasat expects to record synergies to the tune of $80 million in annual operating expenses and around $110 million in annual capital expenditures from the Inmarsat buyout. The company will fully realize these benefits in FY25, contrary to earlier expectations of a three-year window for the same. Such positive feelers seemed to have hit the right investor chords and propelled the stock higher.
This provider of satellite and wireless networking technology is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +144.3%. Revenues are expected to be $1.07 billion, up 63.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For ViaSat, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on VSAT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ViaSat is part of the Zacks Wireless Equipment industry. Qualcomm (QCOM), another stock in the same industry, closed the last trading session 0.3% higher at $111.46. QCOM has returned -1.4% in the past month.
For Qualcomm , the consensus EPS estimate for the upcoming report has changed +2% over the past month to $1.92. This represents a change of -38.7% from what the company reported a year ago. Qualcomm currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Viasat Inc. (VSAT) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
