NEW YORK (TheStreet) -- Shares of ViaSat (VSAT) - Get Report slipped by 4.5% to $69.41 on heavy trading volume on Wednesday, after the Carlsbad, CA-based company posted 2016 fiscal fourth quarter earnings that fell short of analysts' expectations.
After yesterday's market close, the broadband services and technology company reported earnings of 29 cents per diluted share, below analysts' estimates of 37 cents per share.
Revenue for the quarter was $372 million, higher than Wall Street's forecasts of $370.2 million.
Drexel Hamilton maintained its "sell" rating and $61 price target on the stock following the results.
"ViaSat reported F4Q16 results yesterday that were largely in-line with our estimates, but increasing R&D expenses associated with the planned ViaSat-3 spacecraft and type approvals for commercial aircraft equipment lead us to lower our EBITDA projections for next year," the firm wrote in a note to investors earlier today.
ViaSat-3 class satellites and supplemental type certificates (STC) are expected to boost research and development expenses to $113 million in fiscal 2017 from $77 million this year.
The increase is because the non-flight hardware associated with designing and building the satellite components may not be capitalized, Drexel Hamilton explained.
About 969,900 of the company's shares changed hands today compared to its average volume of 522,583 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: VSAT