VSAT - Viasat stock slumps 22% on guidance cut earnings miss amid macro headwinds

Viasat ( NASDAQ: VSAT ) stock slumped 22.4% on Wednesday after the communications company lowered its FY23 guidance to reflect  macroeconomic headwinds and reported weaker-than-expected Q2 results .

Macro headwinds include delayed deliveries by aircraft makers impacting aviation customers, higher costs and delivery schedule delays due to supply chain shortages, longer than anticipated security certification delays for new encryption devices, and impact of the ViaSat-3 satellite launch delay on fixed broadband.

The firm now expects mid-single digit revenue and adj. EBITDA growth in FY23 vs. FY22. Its prior outlook was double-digit revenue and mid-teens adj. EBITDA growth.

Govt. systems revenue growth is expected to be in the high single digits due to strong awards reported in H1 FY23, substantial backlog and IDIQ portfolio, and resolution of supply chain and certification bottlenecks.

Satellite services revenue is projected to increase modestly due to constraints in U.S. fixed broadband ahead of ViaSat-3 (Americas) starting commercial service.

Commercial networks revenue is expected to grow strongly, driven by IFC mobility terminal deliveries, payment related to the Acacia Communications litigation verdict and backlog in ground antenna systems.

"Longer term, and proforma for the Link-16 TDL sale , we expect to achieve our standalone FY25 target of doubling revenue and more than doubling adj. EBITDA relative to FY20," said Viasat ( VSAT ) in a shareholder letter.

The company reported Q2 adj. EPS of -$0.18, while revenue grew 6.2% to $744.8M. It received a $62M payment related to the Acacia litigation with respect to its misuse of Viasat's ( VSAT ) IP, which increased commercial networks product revenue by $56M.

Shares of Viasat ( VSAT ) declined ~35% YTD.

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