Viasat Set to Report Q1 Results: Can Revenue Growth Lift Earnings?
VSAT heads into Q1 fiscal 2027 earnings with expected revenue growth from aviation and government units, while satellite investments pressure profits and margins.
Viasat, Inc. VSAT is set to report first-quarter fiscal 2027 results on Aug. 4, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 498.46%, on average, beating estimates on the previous three occasions and missing once.
The company is expected to record year-over-year revenue growth, driven by strength in its commercial aviation and government businesses, supported by the commercial rollout of ViaSat-3 F3. However, higher satellite network investments, elevated capital spending and financing costs are likely to have weighed on the bottom line.
Factors at Play
During the first quarter of fiscal 2027, Viasat is expected to have benefited from the commercialization of ViaSat-3 F3, which expands network capacity across the Asia-Pacific region. The satellite is likely to have supported service revenues by enabling additional aviation, maritime, enterprise and government connectivity services, while strengthening the company's global broadband capabilities.
During the quarter under review, continued execution of the Protected Tactical SATCOM-Global (PTS-G) Program Swarm 1 Delivery Order is expected to have boosted Viasat's government business. Ongoing work under the United States Space Force contract is likely to have supported demand for the company's secure dual-band satellite communication systems, contributing positively to defense revenues.
Viasat's commercial aviation business is expected to have delivered a solid performance during the quarter, supported by the continued rollout of its in-flight connectivity solution across Jetstar's long-range international fleet. Growing adoption of its next-generation cockpit connectivity service by airlines is likely to have generated higher aviation revenues.
Despite top-line growth, Viasat's earnings might have remained under pressure amid intense competition in the communications and defense markets. Management expects aviation revenue growth to moderate in fiscal 2027, while any delays in regulatory approvals or the commercial ramp-up of the ViaSat-3 satellites could postpone capacity expansion and weigh on broadband revenue growth. In addition, uncertainty surrounding the U.S. government budget remains a potential headwind for the defense business, as it could affect contract awards and revenue generation.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $1.20 billion, indicating an increase from the year-ago quarter’s reported figure of $1.17 billion. The consensus mark for earnings is pegged at 10 cents per share, indicating a decline from 17 cents reported in the year-ago quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Viasat for the first quarter of fiscal 2027. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Viasat carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Sandisk Corporation SNDK has an Earnings ESP of +4.13% and sports a Zacks Rank #1 at present. It is set to release its fourth-quarter fiscal 2026 numbers on Aug. 5.
The Earnings ESP for Motorola Solutions, Inc. MSI is +0.52%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter 2026 numbers on Aug. 5.
The Earnings ESP for Analog Devices, Inc. ADI is +2.37%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter fiscal 2026 numbers on Aug. 19.
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Viasat Inc. (VSAT): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).