The 10-second takeaway
For the quarter ended Sep. 28 (Q2), ViaSat beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
ViaSat logged revenue of $282.8 million. The nine analysts polled by S&P Capital IQ expected a top line of $254.9 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $223.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The nine earnings estimates compiled by S&P Capital IQ anticipated -$0.10 per share. GAAP EPS were -$0.18 for Q2 versus $0.18 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.3%, 400 basis points worse than the prior-year quarter. Operating margin was -0.3%, 250 basis points worse than the prior-year quarter. Net margin was -2.8%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $256.4 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is -$0.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 88 members out of 98 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give ViaSat a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ViaSat is hold, with an average price target of $44.79.
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