Shares of Viasat (NASDAQ:VSAT), a leading provider of satellite communications services, plunged by 5.06% on November 8th, 2024, despite the company's second quarter 2025 earnings report showing signs of improvement in some areas.
Viasat reported a revenue of $1.12 billion for the quarter, down 8.4% year-over-year but still exceeding analyst expectations by 1.4%. The company's net loss narrowed significantly to $137.6 million, an 82% improvement compared to the same quarter last year. However, earnings per share of $1.07 missed analyst estimates, which appears to have dampened investor sentiment.
While the narrowed losses and better-than-expected revenue could be seen as positive signs, analysts believe that the revenue decline and missed earnings expectations were the primary factors behind the stock's sharp decline. The company's forward guidance, which forecasts a modest 1.8% annual revenue growth over the next three years, may have also contributed to the negative market reaction.
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