Why Satellite Communications Provider ViaSat's Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
ViaSat, Inc. (NASDAQ:VSAT) expects to reach sustainable positive free cash flow in the first half of 2025, earlier than previously announced. The company anticipates reporting over $3 billion of liquidity by September 2023, with no near-term outstanding debt maturities. ViaSat also expects high single-digit revenue growth in FY2023 and again in FY2025. The integration of the Inmarsat acquisition is ahead of schedule, with synergy estimates to be fully realized in FY25. Despite a malfunction in the VS-3 F1 Satellite, ViaSat has insurance coverage and does not require a replacement. The company's shares are trading higher by 10.75%.

October 12, 2023 | 2:29 pm
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POSITIVE IMPACT
ViaSat's positive financial outlook and successful integration of the Inmarsat acquisition are likely to boost investor confidence. Despite a satellite malfunction, the company has insurance coverage and does not require a replacement, mitigating potential negative impacts.
ViaSat's announcement of reaching sustainable positive free cash flow earlier than expected, along with high single-digit revenue growth forecasts for FY2023 and FY2025, are positive indicators for the company's financial health. The successful integration of the Inmarsat acquisition and the realization of synergy estimates also add to the positive outlook. Despite the malfunction of the VS-3 F1 Satellite, the company's insurance coverage and the decision not to replace the satellite mitigate potential negative impacts. These factors are likely to boost investor confidence and positively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100