Needham & Company Maintains a 'Hold' on ViaSat (VSAT); Solid 2QF12 Results; Successful Launch of ViaSat-1 Paves Way for Service Launch in Early '12
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Price: $77.12 -5.27%
Rating Summary:
10 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
Rating Summary:
10 Buy, 7 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
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Needham & Company maintains a 'Hold' on ViaSat (NASDAQ: VSAT).
Needham analyst says, "ViaSat reported solid 2QF12 results relative to consensus expectations highlighted by healthy orders, while delays and a mix shift in its Government business lead to moderated EBITDA expectations. That said, these results are dwarfed in significance by expectations for the imminent start of service on the company’s just-launched ViaSat-1 satellite, and the subsequent subscriber ramp. Many variables, including--level of participation from wholesale partners i.e., DirectTV (NYSE: DTV)(NotRated) and Dish Network (Nasdaq: DISH)(NR), level of churn of existing subscriber base, and effectiveness of advertising—could substantially impact the trajectory of this ramp, but in any case it is likely to be material relative to current levels."
"We are reducing our estimates to factor in some delays and an adverse mix shift in the Gov’t. business. F12 goes to $897MM/$0.95 NG EPS (with an $0.18 benefit from a lower tax rate) from $910MM/$0.91. F12 EBITDA is reduced from $175MM to $162MM. F13 goes to $1.064B/$1.57 from $1.11B/$1.73 NG EPS."
For an analyst ratings summary and ratings history on ViaSat click here. For more ratings news on ViaSat click here.
Shares of ViaSat closed at $43.15 yesterday.
Needham analyst says, "ViaSat reported solid 2QF12 results relative to consensus expectations highlighted by healthy orders, while delays and a mix shift in its Government business lead to moderated EBITDA expectations. That said, these results are dwarfed in significance by expectations for the imminent start of service on the company’s just-launched ViaSat-1 satellite, and the subsequent subscriber ramp. Many variables, including--level of participation from wholesale partners i.e., DirectTV (NYSE: DTV)(NotRated) and Dish Network (Nasdaq: DISH)(NR), level of churn of existing subscriber base, and effectiveness of advertising—could substantially impact the trajectory of this ramp, but in any case it is likely to be material relative to current levels."
"We are reducing our estimates to factor in some delays and an adverse mix shift in the Gov’t. business. F12 goes to $897MM/$0.95 NG EPS (with an $0.18 benefit from a lower tax rate) from $910MM/$0.91. F12 EBITDA is reduced from $175MM to $162MM. F13 goes to $1.064B/$1.57 from $1.11B/$1.73 NG EPS."
For an analyst ratings summary and ratings history on ViaSat click here. For more ratings news on ViaSat click here.
Shares of ViaSat closed at $43.15 yesterday.
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