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Viasat (VSAT) Upgrades NATO's UHF SATCOM Control Station

Zacks Equity Research

Viasat, Inc. VSAT recently announced that it has successfully upgraded the North Atlantic Treaty Organization’s (NATO) Ultra High Frequency (UHF) satellite communications (SATCOM) control stations. The enhancement complies with the new Integrated Waveform (IW) baseline.

By working closely to understand NATO’s most urgent needs, Viasat has delivered a cost-effective, scalable and interoperable technology that is required to support emerging mission demands and help NATO warfighters maintain communications at the tactical edge.

Using the company’s Visual Integrated Satellite communications Information, Operation and Networking (VISION) software platform, NATO now gets greater communications interoperability, scalability and flexibility across legacy and next-generation platforms. This, in turn, is expected to significantly improve warfighters’ situational awareness and operational insights in the battlespace.

Interestingly, Viasat’s VISION platform is the first commercially-available software package to simultaneously support all 25-kHz legacy Demand-Assigned Multiple-Access (DAMA) and next-generation IW networks and services. The platform has facilitated faster communication, better reliability, improved functionality and enhanced bandwidth for NATO.

By leveraging the Viasat VISION software, NATO network operators can have more control over communication stations from a single terminal, which simplifies operations and increases the readiness of warfighters. Moreover, this NATO upgrade was completed ahead of government schedules and under budget, underscoring the value of Viasat’s agile business models and deep customer knowledge.

In the last earnings report, the company’s revenues from Government Systems segment increased 37.3% year over year to $261.2 million on the back of very strong performances across the segment's product lines. The segment’s operating profit was $45.9 million, up 84.3% year over year. Adjusted EBITDA was $64.9 million, up 49.2% year over year on account of higher revenues and lower R&D expenses.

Courtesy of compelling growth outlook for products and services with robust new contracts and delivery order agreements, shares of Viasat have rallied 31.7% compared with the industry’s growth of 13% in the year-to-date period. The company beat earnings estimates in each of the trailing four quarters, with an average positive surprise of 230.6%.



Zacks Rank & Other Stocks to Consider

Viasat currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry include PCTEL, Inc. PCTI, Nokia Corp. NOK and Sonim Technologies, Inc. SONM. While PCTEL sports a Zacks Rank #1 (Strong Buy), Nokia and Sonim carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PCTEL surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 146.4%.

Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.

Sonim has long-term earnings growth expectation of 25%.

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