Viasat (VSAT) saw its shares soar 15% in Thursday’s premarket trade after the company upped its fiscal year 2025 revenue forecast, driven by strong demand for its satellite connectivity solutions in the aviation and defense sectors.
The company now anticipates flat-to-slightly-up year-on-year revenue growth for fiscal 2025, an improvement from its previous expectation of roughly flat growth.
In the first quarter of fiscal 2025, Viasat's revenue surged 44% to $1.13 billion, surpassing analysts' average estimate of $1.08 billion. This boost was partly attributed to Inmarsat, which Viasat acquired last year to improve its satellite and land-based communications services.
The company's net loss narrowed significantly to $33 million in the first quarter, compared to a net loss of $77 million in the same period last year.
Revenue from Viasat's communication services segment increased 48% to $826.8 million. Meanwhile, revenue from its defense and advanced technologies segment, which includes encryption and cybersecurity solutions, rose 37% to $299.7 million.
“We see broad competitive moats in IFC and Defense Technology as cost cuts drive improved efficiency,” analysts commented in a post-earnings note.
The investment firm reiterated a Buy rating on VSAT stock and the price target of $28 “and modestly reduce our F26 estimates pending improved line of sight to service revenues from new satellite launches.”