Viasat Inc.’s stock experienced a significant drop of over 28% on Thursday after the company disclosed a problem that could potentially impact one of its satellites.
The ViaSat-3 Satellite setback
Viasat’s ViaSat-3 satellite was launched on April 30 from Cape Canaveral with the aim of expanding the company’s North American fixed-broadband business. However, the satellite setback has caused concern among investors.
Analysts’ Perspectives
Despite the stock selloff, William Blair analyst Louie DiPalma believes that there are mitigating factors that will help alleviate the impact. DiPalma stated, “We believe this stock selloff is largely driven by emotion as there are a number of mitigating factors that soften the blow.” He also mentioned that insurance and Viasat’s recent acquisition of Inmarsat will play a role in lessening any negative consequences.
Raymond James analyst Ric Prentiss expressed concern about the ViaSat-3 problem potentially impacting Viasat’s growth story. He emphasized the importance of the coming months as Viasat strives to address the issue and bring the satellite into at least partial service.
Viasat’s Response
In a statement released on Wednesday, Viasat acknowledged an “unexpected event” that occurred during reflector deployment on the ViaSat-3 Americas satellite. Viasat CEO Mark Dankberg expressed disappointment in the recent developments and highlighted their close collaboration with the reflector’s manufacturer in order to resolve the issue.
Conclusion
While Viasat works towards finding a solution to the setback, contingency plans are being refined to minimize any adverse economic effects on the company. It remains to be seen how this situation will unfold in the coming months.
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