Viasat Inc. VSAT recently inked a memorandum of understanding with Safran Data Systems to expedite advancements in Viasat’s InRange rocket telemetry system to cater to the evolving requirements of rocket launch operators. This telemetry system plays a crucial role in collecting and transmitting vital information from a rocket throughout its launch and flight phases. The data includes a wide array of parameters that offer crucial insights enabling efficient assessment of the launch vehicle’s performance and status.
The trajectory of the rocket involves movement through various phases with changes in the atmosphere and geographical region. This movement may cause signal interruption and impede the transmission of telemetry data.
Viasat’s InRange relies on space-based communication systems, boosting the resilience of telemetry systems. This allows mission operators to access real-time data continuously, irrespective of the launch vehicle’s location. This also eliminates the dependence on ground network infrastructure and allows the monitoring of performance even beyond direct line of sight. Moreover, it also mitigates the impact of blackout zones where there is no coverage of Earth-based connectivity.
Viasat is aiming to augment the InRange system’s capability by integrating Safran’s telemetry antennas, cortex modems and onboard transmitter. Along with enhancing the reliability of InRange systems, Viasat’s goal is to accelerate its commercial launch. The partnership also aims to combine their expertise to craft a standardized model of the ‘InRange’ system that can be used off the shelf. Viasat has already secured a contract from the European Space Agency, and ongoing advancements in the system are expected to enhance its prospects in various use cases, including climate monitoring, government communications, and more.
Viasat’s Satellite Services business is progressing well with key metrics, including ARPU (average revenue per user) and revenues, showing impressive growth. ARPU is growing on the back of a solid retail distribution network, which accounts for a rising proportion of high-value and high-bandwidth subscriber base. Furthermore, the growing adoption of in-flight Wi-Fi services in commercial aircraft is proving conducive to business growth.
Viasat’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. It has a competitive advantage in bandwidth economics, global coverage, flexibility and bandwidth allocation, which makes it believe that mobile broadband will act as a profit churner with a significant improvement in in-flight connectivity revenues.
The stock has lost 17.9% over the past year against the industry‘s rise of 9.1%.
Image Source: Zacks Investment Research
Viasat currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Model N Inc MODN, carrying a Zacks Rank #2 (Buy) at present, delivered a trailing four-quarter average earnings surprise of 20.78%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Arista Networks, Inc. ANET, carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build cloud architecture and enhance their cloud experience. Arista delivered a trailing four-quarter average earnings surprise of 12%.
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NVIDIA Corporation NVDA, currently carrying a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
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