Gilat Stock Plummets 22.5% After Earnings Miss Despite Profit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 54 minutes ago
0mins
Should l Buy GILT?
Source: Fool
- Earnings Performance: Gilat reported Q1 earnings of $0.18 per share, exceeding analyst expectations of $0.11, yet its sales of $110.5 million fell short of the $114.4 million forecast, resulting in a significant 22.5% stock drop.
- Sales Growth: Despite the sales miss, Gilat achieved a 20% year-over-year sales increase and reversed prior operating and net losses, demonstrating resilience and potential in the competitive space market.
- Contract Wins: The company secured multiple seven- and eight-figure satellite communications contracts during the quarter, with CEO Adi Sfadia noting that these wins contributed to a strong backlog and pipeline, enhancing Gilat's market position.
- Full-Year Outlook: Gilat maintained its revenue guidance for 2026 at $500 million to $520 million, reflecting a 13% year-over-year growth expectation, although this growth rate is slower than the Q1 performance, likely contributing to the stock's decline.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GILT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GILT
About GILT
Gilat Satellite Networks Ltd. is an Israel-based provider of satellite-based broadband communications. The Company operates through three segments: Commercial, Mobility, and Services divisions. The Company designs and manufactures satellite ground segment and networking communications equipment, which it sells to its customers either as network components (modems, Block Up converters (BUCs), antennas) or as complete network solutions (which include hubs and related terminals and services) or turnkey projects. The equipment that the Company develops includes commercial Very Small Aperture Terminals (VSAT) systems, defense and homeland security satellite communications systems, solid-state power amplifiers (SSPAs), BUCs, low-profile antennas, on-the-move/on-the-pause terminals, and modems. The Company's equipment is used by satellite operators, service providers, telecommunications operators, system integrators, government and defense organizations, large corporations, and enterprises.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gilat Satellite to Announce Q1 Earnings on May 13
- Earnings Announcement: Gilat Satellite is set to release its Q1 earnings on May 13 before market open, with a consensus EPS estimate of $0.04, reflecting a 33.3% year-over-year increase, indicating sustained improvement in profitability.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $114.56 million, representing a 24.5% year-over-year growth, which highlights the company's strong performance amid rising market demand and could potentially drive stock price appreciation.
- Historical Performance Review: Over the past two years, Gilat has beaten EPS estimates 88% of the time and revenue estimates 50% of the time, demonstrating stable performance and fostering market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw no upward revisions but one downward revision, while revenue estimates experienced one upward and one downward revision, indicating market divergence regarding the company's future performance.
See More
Gilat Stock Plummets 22.5% After Earnings Miss Despite Profit
- Earnings Performance: Gilat reported Q1 earnings of $0.18 per share, exceeding analyst expectations of $0.11, yet its sales of $110.5 million fell short of the $114.4 million forecast, resulting in a significant 22.5% stock drop.
- Sales Growth: Despite the sales miss, Gilat achieved a 20% year-over-year sales increase and reversed prior operating and net losses, demonstrating resilience and potential in the competitive space market.
- Contract Wins: The company secured multiple seven- and eight-figure satellite communications contracts during the quarter, with CEO Adi Sfadia noting that these wins contributed to a strong backlog and pipeline, enhancing Gilat's market position.
- Full-Year Outlook: Gilat maintained its revenue guidance for 2026 at $500 million to $520 million, reflecting a 13% year-over-year growth expectation, although this growth rate is slower than the Q1 performance, likely contributing to the stock's decline.
See More
Gilat Satellite Q1 Earnings Beat Expectations
- Earnings Beat: Gilat Satellite reported a Q1 non-GAAP EPS of $0.18, exceeding expectations by $0.14, indicating improved profitability that may boost investor confidence.
- Revenue Growth Miss: The company achieved $110.5 million in revenue for Q1, a 20.1% year-over-year increase, yet fell short of expectations by $4.06 million, suggesting intensified market competition may be impacting sales performance.
- Future Financial Guidance: Management projects 2026 revenue between $500 million and $520 million, slightly above the consensus of $509.5 million, reflecting confidence in future growth with an expected midpoint growth rate of approximately 13%.
- Adjusted EBITDA Outlook: The anticipated adjusted EBITDA for 2026 is between $61 million and $66 million, with a midpoint growth rate of around 19%, indicating ongoing efforts to control costs and enhance profitability will continue to yield positive results.
See More
Gilat Secures Over $7 Million Defense Order
- Defense Order Secured: Gilat Satellite Networks' defense division has received an order valued at over $7 million through a prime contractor to support a U.S. government defense program, indicating strong demand and growth potential in the defense market.
- Delivery Timeline: The company expects to deliver its EnduroStream solid-state power amplifier solution over the next 24 months, a timeline that will help enhance its market share in defense infrastructure.
- Technological Advantage: The EnduroStream product is designed for high-power satellite communications applications, offering an alternative to traditional amplifier technologies, thereby strengthening the company's competitive position in high-end technology sectors.
- Positive Market Reaction: Gilat's stock price rose 4.91% in premarket trading to $17.30, reflecting investor optimism regarding the new order and confidence in future growth.
See More
Gilat Secures Over $7 Million Defense Order
- Significant Order Value: Gilat Defense has secured an order exceeding $7 million through a prime contractor to support the U.S. Department of War, with delivery expected over the next 24 months, marking a new opportunity for the company in the defense market.
- Product Innovation: The EnduroStream solid-state power amplifier (SSPA) solution is designed to replace traditional traveling wave tube amplifiers (TWTAs), providing high power and reliability that meet stringent requirements for modern military SATCOM, enhancing the product's market competitiveness.
- Market Expansion: This order confirms the demand for high-power solid-state solutions, positioning Gilat's EnduroStream product line as a key offering for defense customers looking to modernize ground infrastructure, thereby advancing the company's strategic positioning in the defense sector.
- Technological Advantages: EnduroStream not only delivers the necessary power levels but also offers improved operational resilience and lifecycle advantages, ensuring reliability in mission-critical environments, thus strengthening Gilat's leadership in the satellite communication market.
See More
Gilat Satellite Networks to Release Q1 2026 Financial Results
- Earnings Release Schedule: Gilat Satellite Networks Ltd. will announce its Q1 2026 financial results on May 13, 2026, with CEO Adi Sfadia and CFO Gil Benyamini discussing the results and participating in a Q&A session, which is expected to attract significant investor and analyst interest.
- Conference Timing and Format: The conference call will start at 9:30 AM EST (4:30 PM IST) and will be available via a simultaneous webcast, enhancing global investor participation and improving the company's transparency and market trust.
- Showcasing Technical Strength: With over 35 years of experience in satellite broadband communications, Gilat offers a range of high-value solutions supporting commercial and defense applications, demonstrating the company's competitive edge and technological leadership in a rapidly evolving market.
- Market Risk Advisory: The company highlighted that future performance may be influenced by various risk factors, including market competition, delays in technology development, and international operational risks, urging investors to remain vigilant for informed investment decisions.
See More
Gilat Satellite to Announce Q1 Earnings on May 13
- Earnings Announcement: Gilat Satellite is set to release its Q1 earnings on May 13 before market open, with a consensus EPS estimate of $0.04, reflecting a 33.3% year-over-year increase, indicating sustained improvement in profitability.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $114.56 million, representing a 24.5% year-over-year growth, which highlights the company's strong performance amid rising market demand and could potentially drive stock price appreciation.
- Historical Performance Review: Over the past two years, Gilat has beaten EPS estimates 88% of the time and revenue estimates 50% of the time, demonstrating stable performance and fostering market confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates saw no upward revisions but one downward revision, while revenue estimates experienced one upward and one downward revision, indicating market divergence regarding the company's future performance.
See More
Gilat Stock Plummets 22.5% After Earnings Miss Despite Profit
- Earnings Performance: Gilat reported Q1 earnings of $0.18 per share, exceeding analyst expectations of $0.11, yet its sales of $110.5 million fell short of the $114.4 million forecast, resulting in a significant 22.5% stock drop.
- Sales Growth: Despite the sales miss, Gilat achieved a 20% year-over-year sales increase and reversed prior operating and net losses, demonstrating resilience and potential in the competitive space market.
- Contract Wins: The company secured multiple seven- and eight-figure satellite communications contracts during the quarter, with CEO Adi Sfadia noting that these wins contributed to a strong backlog and pipeline, enhancing Gilat's market position.
- Full-Year Outlook: Gilat maintained its revenue guidance for 2026 at $500 million to $520 million, reflecting a 13% year-over-year growth expectation, although this growth rate is slower than the Q1 performance, likely contributing to the stock's decline.
See More
Gilat Satellite Q1 Earnings Beat Expectations
- Earnings Beat: Gilat Satellite reported a Q1 non-GAAP EPS of $0.18, exceeding expectations by $0.14, indicating improved profitability that may boost investor confidence.
- Revenue Growth Miss: The company achieved $110.5 million in revenue for Q1, a 20.1% year-over-year increase, yet fell short of expectations by $4.06 million, suggesting intensified market competition may be impacting sales performance.
- Future Financial Guidance: Management projects 2026 revenue between $500 million and $520 million, slightly above the consensus of $509.5 million, reflecting confidence in future growth with an expected midpoint growth rate of approximately 13%.
- Adjusted EBITDA Outlook: The anticipated adjusted EBITDA for 2026 is between $61 million and $66 million, with a midpoint growth rate of around 19%, indicating ongoing efforts to control costs and enhance profitability will continue to yield positive results.
See More
Gilat Secures Over $7 Million Defense Order
- Defense Order Secured: Gilat Satellite Networks' defense division has received an order valued at over $7 million through a prime contractor to support a U.S. government defense program, indicating strong demand and growth potential in the defense market.
- Delivery Timeline: The company expects to deliver its EnduroStream solid-state power amplifier solution over the next 24 months, a timeline that will help enhance its market share in defense infrastructure.
- Technological Advantage: The EnduroStream product is designed for high-power satellite communications applications, offering an alternative to traditional amplifier technologies, thereby strengthening the company's competitive position in high-end technology sectors.
- Positive Market Reaction: Gilat's stock price rose 4.91% in premarket trading to $17.30, reflecting investor optimism regarding the new order and confidence in future growth.
See More
Gilat Secures Over $7 Million Defense Order
- Significant Order Value: Gilat Defense has secured an order exceeding $7 million through a prime contractor to support the U.S. Department of War, with delivery expected over the next 24 months, marking a new opportunity for the company in the defense market.
- Product Innovation: The EnduroStream solid-state power amplifier (SSPA) solution is designed to replace traditional traveling wave tube amplifiers (TWTAs), providing high power and reliability that meet stringent requirements for modern military SATCOM, enhancing the product's market competitiveness.
- Market Expansion: This order confirms the demand for high-power solid-state solutions, positioning Gilat's EnduroStream product line as a key offering for defense customers looking to modernize ground infrastructure, thereby advancing the company's strategic positioning in the defense sector.
- Technological Advantages: EnduroStream not only delivers the necessary power levels but also offers improved operational resilience and lifecycle advantages, ensuring reliability in mission-critical environments, thus strengthening Gilat's leadership in the satellite communication market.
See More
Gilat Satellite Networks to Release Q1 2026 Financial Results
- Earnings Release Schedule: Gilat Satellite Networks Ltd. will announce its Q1 2026 financial results on May 13, 2026, with CEO Adi Sfadia and CFO Gil Benyamini discussing the results and participating in a Q&A session, which is expected to attract significant investor and analyst interest.
- Conference Timing and Format: The conference call will start at 9:30 AM EST (4:30 PM IST) and will be available via a simultaneous webcast, enhancing global investor participation and improving the company's transparency and market trust.
- Showcasing Technical Strength: With over 35 years of experience in satellite broadband communications, Gilat offers a range of high-value solutions supporting commercial and defense applications, demonstrating the company's competitive edge and technological leadership in a rapidly evolving market.
- Market Risk Advisory: The company highlighted that future performance may be influenced by various risk factors, including market competition, delays in technology development, and international operational risks, urging investors to remain vigilant for informed investment decisions.
See More
