Viasat, Inc. VSAT recently announced that it has secured a five-year Indefinite Delivery Indefinite Quantity contract from the U.S. General Services Administration. With a ceiling of $450 million, the deal is aimed at supporting Rapid Migration of Command, Control, Communications and Computers/Cyber Capability Best Practices for U.S. Special Operations Forces (SOF) and U.S. General Purpose Forces (GPF).
Notably, the agreement is expected to meet the requirements of the Department of Defense in mobile networking, cybersecurity and broadband satellite communications technology space. It will allow SOF and GPF to deploy new operational capabilities, products and services which will likely boost mission effectiveness and safety of warfighters.
The satellite & wireless networking technology provider intends to provide a portfolio of avant-garde technologies to improve communications, intelligence, security and operational capabilities of SOF and GPF warfighters in the battlefield.
Buoyed by such contract wins, particularly from federal customers, the company’s top line witnessed a CAGR of 10.9% from fiscal 2009 to fiscal 2018. The momentum is expected to continue in the coming days.
Encouragingly, Viasat’s blue-chip customer base, which comprises the U.S. Department of Defense, satellite network integrators and communication service providers, adds to its strength. Presently, the company’s Government Systems unit is acting as a major profit churner.
Viasat’s Satellite Services business is progressing well with key metrics including steady growth of average revenue per user and revenues showing impressive growth. Further, growing adoption of in-flight Wi-Fi services in commercial aircrafts are proving conducive to the growth.
Viasat has long-term EPS growth expectation of 15.3%. Driven by diligent execution of operational objectives, the stock has rallied 50.6% on average compared with the industry’s rise of 20.7% in the year-to-date period.
Currently, Viasat carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the industry include Harris Corp. HRS, Motorola Solutions, Inc. MSI and Ubiquiti Networks, Inc. UBNT, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Harris has long-term earnings growth expectation of 8%.
Motorola has long-term earnings growth expectation of 7.7%.
Ubiquiti has long-term earnings growth expectation of 19.8%.
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