Viasat's sales and earnings in fiscal Q4 came in below Wall Street's expectations, and forward guidance suggested only moderate growth.
Blue Origin's recent launch explosion likely also factored into Viasat's sell-off.
Viasat (NASDAQ: VSAT) stock moved lower in Friday's daily session following the release of the company's latest quarterly report and pullbacks in the space-tech sector connected to the explosion of Blue Origin's attempted rocket launch. Viasat's share price ended the day down 7%, and shares had been off as much as 12.9% earlier in trading.
After the market closed yesterday, Viasat published results for the fourth quarter of its 2026 fiscal year -- which ended March 31. The company posted an unexpected loss in the period, and sales also came in below Wall Street's forecast.
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With its fiscal Q4 report, Viasat announced a non-GAAP (adjusted) loss of $0.02 per share on sales of $1.17 billion. The average Wall Street analyst estimate had actually called for the business to post an adjusted profit of $0.32 per share in the period, and revenue also fell $30 million short of the average target. Despite some strong demand indicators in the space-tech and satellite industries, Viasat's fiscal Q4 sales and forward guidance didn't show the level of strong demand ramp investors were hoping for.
A rocket launch conducted by Jeff Bezos' Blue Origin company exploded on the launch pad yesterday, and the development has caused some valuation pullbacks across the space-tech industry. The unfortunate launch outcome may have made investors even more cautious when it came to Viasat's forward guidance.
The company says that it expects mid-single-digit revenue growth for the 2027 fiscal year. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to come in somewhere between flat and up slightly on an annual basis. While space tech stocks have generally seen bullish valuation tailwinds recently, Viasat could continue to be volatile in the near term.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.