Like one of its foundational assets, satellite company Viasat's (VSAT 13.93%) stock was ascending skyward on Wednesday. This was entirely justifiable, as the company announced it had signed a supply contract with one of the best-funded and most reliable clients on the scene. The stock's 10%-plus rise was far more robust than the S&P 500 index's 0.5% increase at that point in the trading session.
The Force is with it
Before market open that day, Viasat announced it was one of five companies that had secured a prime contract award from that major client, the U.S. military's Space Force. The company will design and develop a satellite system for a project that ultimately aims to put a dedicated satellite network in space.
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This phase of the work will last seven months, Viasat added. It did not identify any of the other companies involved in the project.
In the press release, Viasat Vice President of Space and Mission Systems John Reeves said the contract win "underscores our proven track record in designing and delivering secure, resilient, and high-performance satellite communication solutions."
Dollar figures lacking
Reeves touted Viasat's ability to design a system that can "provide critical capabilities to enable global connectivity and enhance warfighters' situational awareness and operational effectiveness to meet emerging threats."
However, Viasat did not provide any financial details of the Space Force contract. So while the positive investor reaction was understandable, that lack of detail makes it very difficult to determine to what extent the work will affect the company's fundamentals.
