Can VSAT maintain its earnings momentum into 2025?

**Viasat's (VSAT) likelihood of maintaining earnings momentum into 2025 appears low based on current financial indicators and market analyses.** Here's why: 1. **Recent Financial Performance**: Viasat's net income and revenue have shown declines, with a net income of -$146.91 million and total revenue of $1.12 billion for the most recent quarter ending on December 31, 2024. The diluted EPS was -$1.23, indicating a loss for the period. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |VSAT|VSAT.O|Viasat|2024 Q4|1.150013E9|-9.5905E7||185| |VSAT|VSAT.O|Viasat|2025 Q1|1.12646E9|-2.1687E7|-0.26|185| |VSAT|VSAT.O|Viasat|2025 Q2|1.122262E9|-1.21796E8|-1.07|185| |VSAT|VSAT.O|Viasat|2025 Q3|1.123767E9|-1.46907E8|-1.23|185| 2. **Growth Rates**: The company has experienced a negative year-over-year net income growth rate of -23.09% and a revenue growth rate of -0.42%. These figures suggest that Viasat is facing significant headwinds, which could persist into 2025 if not addressed. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |VSAT|VSAT.O|Viasat|2024 Q4|-107.99362876822853|72.64896058994233||185| |VSAT|VSAT.O|Viasat|2025 Q1|71.7991729733947|44.45665569364099|68.67469879518072|185| |VSAT|VSAT.O|Viasat|2025 Q2|84.0948178483421|-8.417801316288767|82.62987012987013|185| |VSAT|VSAT.O|Viasat|2025 Q3|-23.09026468592112|-0.42284759321565313|-24.242424242424242|185| 3. **Market Sentiment and Analysts' Views**: The consensus rating for Viasat is "Neutral" with an average analyst price target of $15, which implies limited upside potential. Analysts have expressed concerns about the competitiveness of Viasat's communication services business against rivals like Starlink. Additionally, Viasat has been missing earnings estimates in several quarters, which could affect investor confidence. 4. **Strategic Initiatives**: Despite the challenges, Viasat has announced strategic initiatives such as collaborations and projects like the Moonlight initiative with the European Space Agency. These initiatives could potentially turn around the company's fortunes, but their impact on earnings momentum in the short term is uncertain. 5. **Technical Indicators**: From a technical standpoint, Viasat's stock has shown a bullish trend, breaking out above the 50-day moving average. However, this does not guarantee continued upward momentum. 6. **Financial Health Concerns**: Viasat's financial health is under pressure, with a severe Altman Z-score indicating a potential risk of bankruptcy. The company's persistent issuance of new debt and negative Piotroski F-Score suggest operational challenges. In conclusion, while Viasat has announced strategic initiatives and received an analyst upgrade, the current financial data and market sentiment suggest that maintaining earnings momentum into 2025 will be challenging. The company's ability to execute its strategic plans and improve its core business performance will be crucial in determining its future earnings trajectory.