Why Is ViaSat (VSAT) Up 33% Since Last Earnings Report?

ViaSat (VSAT) shares have increased by 33% since its last earnings report, outperforming the S&P 500; however, analysts have not revised earnings estimates in the last two months, leading to a -841.67% shift in the consensus estimate. Despite a strong Growth Score of A and an aggregate VGM Score of A, ViaSat holds a Zacks Rank #5 (Strong Sell), indicating expectations of below-average returns in the coming months. Comparatively, AST SpaceMobile (ASTS), another stock in the Zacks Wireless Equipment industry, has gained 86.1% over the past month.

Analysis

ViaSat (VSAT) has experienced a significant share price appreciation of approximately 33% since its last earnings report, notably outperforming the S&P 500. This rally, however, starkly contrasts with underlying analyst sentiment and estimate trends. Despite analysts not issuing any earnings estimate revisions in the last two months, the consensus estimate for ViaSat has dramatically shifted by -841.67%. While the company boasts a strong Growth Score of A, an overall aggregate VGM Score of A, and a Value Score of B, its Momentum Score is a lagging F. This culminates in a Zacks Rank #5 (Strong Sell), signaling expectations of below-average returns in the upcoming months. For industry context, peer AST SpaceMobile (ASTS) recorded an 86.1% stock gain over the past month and reported a 44% year-over-year revenue increase to $0.72 million for its quarter ended March 2025, although its EPS declined to -$0.20 from -$0.16 year-ago; ASTS holds a Zacks Rank #3 (Hold) and a VGM Score of F. The strongly negative sentiment score of -0.7 for VSAT further reinforces the cautious outlook suggested by its Zacks Rank and the significant negative consensus estimate revision, despite the recent share price performance.

Key Decisions for Investors

• Investors should treat ViaSat's recent 33% share price increase with caution, given its Zacks Rank #5 (Strong Sell) and a substantial -841.67% negative shift in the consensus earnings estimate, which signals potential overvaluation or unsustainable momentum.
• The stock's F grade for Momentum, despite strong Growth and Value scores, warrants close monitoring for signs of reversal, particularly as analysts have not positively revised estimates to support the recent rally.
• Consider awaiting further clarity from ViaSat's next earnings release or any forthcoming analyst estimate revisions before making significant investment decisions, as the current fundamental outlook suggests below-average returns.