Viasat, Inc. VSAT recently restructured its operating segments to better reflect its existing businesses and offer investors greater transparency to its future growth opportunities. The company unveiled additional details about its new segment reporting structure, which will be effective from the first quarter of fiscal 2025. The company will have two distinct segments, namely Communication Services and Defense and Advanced Technologies. The new reporting structure aims to improve the assessment of operational performance and resource allocation across its diverse business lines.
The Communication Service segment encompasses four key business lines — Aviation, Government Satcom, Maritime, and Fixed and Other. Viasat is set to develop and offer an extensive portfolio of advanced satellite and state-of-the-art wireless products, networks and terminal solutions to enhance both fixed and mobile broadband and narrowband services.
Within the maritime industry, the company will provide critical support for vessel operations, navigation, crew connectivity and safety services through its NexusWave-managed connectivity service. For defense and civilian agencies, Viasat will deliver secure interconnectivity solutions.
The Defense and Advanced Technologies segment comprises Information Security and Cyber Defense, Space and Mission Systems, Tactical Networking, and Advanced Technologies and Other. The Information Security business line is poised to provide cutting-edge encryption products to safeguard data integrity across various networks.
The Space and Mission Systems business line will focus on developing ground-based technologies such as antennas, modems and gateways, as well as space-based communication systems and payloads. The Tactical Networking group will offer resilient communications solutions within multi-domain battlespaces. The Advanced Technologies and Other business line will provide innovations in commercial communication satellite products and sovereign and multi-orbit solutions.
The restructured operating segments are expected to provide better clarity about the end markets and help the company to better focus on each line of business.
Viasat designs, develops and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment to the public, as well as military, enterprises and government enterprises. In the last quarter, the company reported revenues of $1.15 billion. The addition of this new segment is expected to be further profitable for the company in the upcoming quarters.
Shares of Viasat have lost 37.1% over the past year against the industry’s growth of 36.3%.
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Zacks Rank and Key Picks
Viasat currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry have been discussed below.
Ooma, Inc. OOMA offers cloud-based communications solutions, smart security and other connected services. The company’s smart software-as-a-service and unified-communications-as-a-service platforms serve as a hub for seamless communications and networking infrastructure applications. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
It delivered a trailing four-quarter average earnings surprise of 8.90%. In the last reported quarter, Ooma delivered an earnings surprise of 27.27%.
Telephone and Data Systems, Inc. TDS, sporting a Zacks Rank of 1 at present, provides wireless products and services, cable and wireline broadband, TV and voice services to approximately 6 million customers in Chicago.
In the last reported quarter, TDS delivered an earnings surprise of 145.45%.
Motorola Solutions, Inc. MSI provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank #2 (Buy).
It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.
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