Viasat Adds 2 Dealers to Business Aviation Dealer Program

In an effort to expand its business aviation dealer program, Viasat Inc. VSAT recently announced the addition of two new installation partners to facilitate the increased use of its in-flight Internet solution. With the addition of GoAeroMx and SoCal Jets, Inc. as its installation partners, the number of authorized Viasat dealers extends to more than 20.

Viasat's extensive network of authorized dealers are approved of selling and installing the company’s high-speed Ka-band as well as dual-band Ku-/Ka-band in-flight Internet equipment to customers of business jet. Notably, the company’s business-class shipsets comprise Viasat Ku-band, Viasat dual-band along with its latest fourth-generation Ka-band Global Aero Terminal 5510 satellite shipset.

Viasat's high-speed Ka-band inflight connectivity service enables passengers to stream more Internet content and allows flight crews to remain connected for enhanced passenger service. As a matter of fact, this move marks an excellent opportunity for Viasat to extend the offering of high-speed Ka-band in-flight service to large and mid-cabin business jet passengers.

Our Take

Viasat operates in a highly dynamic and competitive market, which includes stalwarts from varied industries. Hence, to combat such competitive pressure, the company has to continuously customize its network offering per needs, enhance the cost-effectiveness of its products and services, and boost the satellite data networks. Increased competition results in price reductions, reduced margins and loss of market share, in turn affecting operations and cash flows.

In the past three months, the Zacks Rank #4 (Sell) company has lost 11.4% against the industry’s growth of 4.8%.

Though the company’s R&D activities augur well for the long term, these weigh on its net income in the near future. For instance, Viasat expects a huge rise in R&D activities related to the launch of ViaSat-3 satellites that can materially impact its margins and bottom line, going forward.

Key Picks

Some better-ranked stocks from the same industry are Ubiquiti Networks, Inc. UBNT, Comtech Telecommunications Corp. CMTL and Sonus Networks, Inc. RBBN. While Ubiquiti Networks and Comtech Telecommunications sport a Zacks Rank #1 (Strong Buy), Sonus Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti Networks surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 8.96%.

Comtech Telecommunications outpaced estimates in each of the preceding four quarters with an average earnings surprise of 136.02%.

Sonus Networks exceeded estimates in each of the preceding four quarters with an average positive earnings surprise of 168.11%.

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