Shares of Viasat (VSAT) jumped 15% in pre-market trading on Thursday following the company’s upward revision of its revenue forecast for the 2025 fiscal year. The revised outlook reflects strong demand for satellite communication services, particularly within the aviation and defense sectors.
The company now anticipates that its revenue for the 2025 fiscal year will be in line with or slightly above the previous year’s figures. This marks a notable increase from earlier projections, which had suggested revenue would remain relatively stable.
In the first quarter of the 2024 fiscal year, Viasat reported a 44% rise in revenue, reaching $1.13 billion, surpassing the average analyst estimate of $1.08 billion. This growth is partially attributed to the acquisition of Inmarsat, completed last year, which has expanded Viasat’s capabilities in both satellite and ground communication services.
The company also saw a significant reduction in net losses for the quarter, decreasing to $33 million from $77 million in the same period last year.
Viasat’s communications services division posted a 48% revenue increase, totaling $826.8 million. Meanwhile, the defense and advanced technologies segment, which provides encryption and cybersecurity services, saw a 37% rise in revenue to $299.7 million.
Investors have maintained a positive buy recommendation for VSAT shares, setting a price target of $28. However, they have slightly lowered the revenue forecast for the 2025 fiscal year pending further clarity on earnings from upcoming satellite launches.