Why ViaSat Shares Skyrocketed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ViaSat (NASDAQ: VSAT  ) skyrocketed today by as much as 24% after the company reported earnings.

So what: Revenue in the quarter hit a new record at $286.4 million, which included $265.7 million in new contracts. Adjusted earnings per share came in at $0.04. On a GAAP basis, the company posted a net loss of $0.47 per share, mostly due to extinguishing debt.

Now what: CEO Mark Dankberg said the company gained momentum in its Exede satellite broadband service with net additions topping 50% sequentially. Following the results, Needham upgraded its rating on ViaSat from hold to buy, along with a $50 price target. The firm cites strong subscriber trends as evidence that ViaSat has overcome some of its operational hurdles while acknowledging that its biggest risk is losing subscriber additions from DISH Network, which is its dominant wholesale partner.

Interested in more info on ViaSat? Add it to your watchlist by clicking here.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2243133, ~/Articles/ArticleHandler.aspx, 4/24/2014 5:43:38 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement