Viasat Stock Gains Despite Q4 Revenue Miss on Strong Backlog Growth

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Viasat Inc VSAT reported fourth-quarter FY21 revenue growth of 1% year-on-year to $595.8 million, missing the analyst consensus of $608.1 million.
New contract awards rose 7% Y/Y to $593 million, and Sales backlog increased 23% Y/Y to $2.3 billion.
Satellite Services revenue rose 8% Y/Y to $230.3 million, aided by strong U.S. demand for premium broadband services partially offset by the impact of the pandemic on the In-Flight Connectivity (IFC) revenue.
Commercial Networks revenue declined 9% Y/Y to $84.7 million due to lower IFC terminal sales partially offset by strong ground antenna system sales. Government Systems revenue declined 2% Y/Y to $280.8 million due to continued procurement frictions.
The operating income rose 106.5% Y/Y to $29.1 million, with the margin expanding 250 basis points to 4.9%.
Non-GAAP net income rose 26% Y/Y to $25.2 million. The margin expanded 80 basis points to 4.2%.
Adjusted EBITDA rose 23% Y/Y to $148.1 million. The margin expanded 453 basis points to 24.9%.
Non-GAAP EPS of $0.36 was not comparable to the analyst consensus of $0.01.
Viasat generated $170 million in operating cash flow and held $296 million in cash and equivalents.
Price action: VSAT shares traded higher by 1.71% at $48.23 on the last check Tuesday.