In-flight Wi-Fi and government contracts drive revenue surge for Carlsbads Viasat

ViaSat (NASDAQ:VSAT) posted its quarterly earnings data on Thursday. The communications equipment provider reported ($0.40) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.56) by $0.16, Morningstar.com reports. ViaSat had a negative net margin of 5.58% and a negative return on equity of 3.97%. The firm had revenue of $517.50 million for the quarter, compared to the consensus estimate of $468.99 million. During the same quarter in the prior year, the company posted $0.09 earnings per share. The company’s revenue for the quarter was up 32.3% compared to the same quarter last year.

NASDAQ:VSAT traded down $0.61 during midday trading on Friday, hitting $70.18. The company’s stock had a trading volume of 5,933 shares, compared to its average volume of 428,694. ViaSat has a fifty-two week low of $59.16 and a fifty-two week high of $80.26. The company has a current ratio of 1.37, a quick ratio of 0.88 and a debt-to-equity ratio of 0.57. The company has a market cap of $3.69 billion, a PE ratio of -81.76 and a beta of 0.81.

On the other hand Viasat Inc (NASDAQ:VSAT) has Relative Strength Index (RSI 14) of 73.3 along with Average True Range (ATR 14) of 2.31. Where the relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine excess buying & selling conditions of an asset, it is one of the most popular technical indicators, computed on the basis of the speed and direction of a stock’s price movement. The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days) as suggested by J Welles Wilder. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD (Moving Average Convergence/Divergence). The average true range (ATR) is a measure of volatility introduced by Welles Wilder.

Several equities analysts have recently issued reports on VSAT shares. BidaskClub upgraded shares of ViaSat from a “hold” rating to a “buy” rating in a report on Thursday, September 20th. Zacks Investment Research downgraded shares of ViaSat from a “hold” rating to a “sell” rating in a report on Tuesday, August 21st. TheStreet downgraded shares of ViaSat from a “c-” rating to a “d+” rating in a report on Friday, October 5th. Needham & Company LLC cut their price target on shares of ViaSat from $74.00 to $70.00 and set a “buy” rating on the stock in a report on Monday, August 13th. Finally, ValuEngine downgraded shares of ViaSat from a “buy” rating to a “hold” rating in a report on Thursday, August 2nd. Two analysts have rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company’s stock. ViaSat has an average rating of “Hold” and an average target price of $69.38.

Investors as well as the sell-side will be paying close attention to how the actual numbers compare with the estimates. Earnings surprises can have a huge impact on a company’s stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock’s price, but also to a gradual increase over time. Hence, it’s not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.

In related news, COO Richard A. Baldridge sold 31,700 shares of the stock in a transaction that occurred on Wednesday, September 12th. The shares were sold at an average price of $63.23, for a total value of $2,004,391.00. Following the transaction, the chief operating officer now owns 61,700 shares in the company, valued at approximately $3,901,291. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Jeffrey M. Nash sold 5,000 shares of the stock in a transaction that occurred on Wednesday, August 15th. The stock was sold at an average price of $62.80, for a total transaction of $314,000.00. Following the completion of the transaction, the director now owns 5,000 shares in the company, valued at approximately $314,000. The disclosure for this sale can be found here. In the last quarter, insiders sold 40,100 shares of company stock worth $2,531,025. 8.10% of the stock is owned by corporate insiders.

Viasat Inc (NASDAQ:VSAT) has average revenue estimates of $479.92 Million, compared to low analyst estimates of $455.9 Million and high estimates of $502.92 Million for the current quarter. A total number of 6 analysts provided estimations over revenues. For the current year the company’s revenue estimates are $1.92 Billion compared to low analyst estimates of $1.86 Billion and high estimates of $1.99 Billion according to the prediction of 10 analysts.

A number of large investors have recently modified their holdings of the stock. Partners Capital Investment Group LLP grew its stake in shares of ViaSat by 7.7% during the 2nd quarter. Partners Capital Investment Group LLP now owns 437,707 shares of the communications equipment provider’s stock worth $28,766,000 after purchasing an additional 31,123 shares during the period. Rhumbline Advisers grew its stake in shares of ViaSat by 1.0% during the 2nd quarter. Rhumbline Advisers now owns 104,858 shares of the communications equipment provider’s stock worth $6,891,000 after purchasing an additional 1,089 shares during the period. Firsthand Capital Management Inc. grew its stake in shares of ViaSat by 100.0% during the 2nd quarter. Firsthand Capital Management Inc. now owns 80,000 shares of the communications equipment provider’s stock worth $5,258,000 after purchasing an additional 40,000 shares during the period. Sei Investments Co. grew its stake in shares of ViaSat by 78.6% during the 2nd quarter. Sei Investments Co. now owns 20,120 shares of the communications equipment provider’s stock worth $1,322,000 after purchasing an additional 8,854 shares during the period. Finally, Sylebra HK Co Ltd grew its stake in shares of ViaSat by 158.6% during the 2nd quarter. Sylebra HK Co Ltd now owns 1,304,806 shares of the communications equipment provider’s stock worth $85,752,000 after purchasing an additional 800,248 shares during the period.

Wall Street analysts are predicting that Viasat Inc (NASDAQ:VSAT) will report earnings per share of $-0.37 in their quarterly report. For the current quarter Viasat Inc (NASDAQ:VSAT) has high EPS estimates of $-0.32 in contradiction of low EPS estimates of $-0.48. However a year ago for the same quarter the company has reported $-0.42 EPS. Average estimation for the current quarter has been provided by 5 analysts.

Viasat, Inc provides broadband and communications products and services worldwide. The company's Satellite Services segment offers satellite-based fixed broadband services, including broadband Internet access and voice over Internet protocol services to consumers and businesses; in-flight Internet and aviation software services to commercial airlines; and mobile broadband services comprising network management and high-speed Internet connectivity services for customers using airborne, maritime, and ground mobile satellite systems.

A large surprise factor in either direction typically can lead to a significant swing in the stock price in the hours and days after the report. Previously Viasat Inc (NASDAQ:VSAT) reported $-0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $-0.46 by $0.03 with surprise factor of 6.5%.

Viasat, Inc. (NASDAQ:VSAT) ran 2.3447678 after opening at $69.09.  389160 shares traded hands for the 3796858400 market cap company.  Viasat, Inc. (NASDAQ:VSAT) is a “Buy” according to the social consensus. 

Diving into some pivot points we note that the Fibonacci S1 stands at 60.622368 while the R1 resistance number is 63.410965.  The S1 Camarilla pivot is 62.225418 while the R1 resistance is 62.894585.  The Demark Pivot is as follows: R1 resistance is 64.89 while S1 support is 61.24.

Viasat Inc (NASDAQ:VSAT) shares traded on 11.03% above secure line and closed at $70.79. The stock exchanged hands 1.38 Million shares versus average trading capacity of 456.79 Million shares. It has a market cap of $4.19 Billion.

Taking a look at some additional key pivot levels we note that the one month Pivot Woodie support stands at 60.875 while 1-month resistance level is at 64.525.  On the other hand shares would see support at the 1-month pivot woodie of 60.875 and resistance at 64.525.  One of the key differences in calculating Woodie’s Pivot Point to other pivot points is that the current session’s open price is used in the PP formula with the previous session’s high and low.

Consequently Viasat Inc (NASDAQ:VSAT)’s weekly and monthly volatility is 6.28%, 3.57% respectively.

Viasat, Inc. (NASDAQ:VSAT) shares hit a high of 71.78 within the past month while touching a low point of 59.26 over the past 30 days. 

Exponential 50-Day: 62.966568Exponential 30-Day: 63.13785Exponential 20-Day: 63.550163Exponential 100-Day: 63.341938Exponential 200-Day: 64.26786

In terms of Bollinger Bands, the upper 20 band holds at 67.88085 while the lower is currently 57.365147.  The average volume over the past 3 months is 433632.97 compared to the 10-day average of 636979.

Other moving averages that have been taken into consideration in order to try to figure out the potential direction of the shares include the Hull Moving Average.  The Hull MA currently reads 68.811.  The Positive Directional Indicator is at 39.09111.  The volume weighted moving average stands at 63.736633.  Putting all the pieces together the moving average signal for Viasat, Inc. (NASDAQ:VSAT) is a consensus “Strong Buy” signal.

Changing lanes over to oscillators, we see that the Aroon Up oscillator is currently 100 while the Aroon Down shows 57.142857.  These are useful in determining if a reversal might be in the near future.  Given the Ultimate Oscillator number of 64.89056 and Parabolic SAR number of 60.506977, combined with other variables, Viasat, Inc. (NASDAQ:VSAT) has been given a consensus oscillator rating of “Sell”. 

Investors will be monitoring closely to see if the firm can move towards the $82.19 time high as the Bull Bear Power number stands at 12.300206.  

Viasat, Inc. (NASDAQ:VSAT) has returned 13.901851 after closing at $70.79  in the recent session.  The stock is looking to return closer to the 52-week high of $80.26.


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