Back to top

Image: Bigstock

Here's What Investors Should Know Ahead of Gilat's Q4 Earnings

Read MoreHide Full Article

Gilat Satellite Networks Ltd. (GILT - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 12.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) has been steady at 14 cents in the past 60 days, suggesting growth of 27.3% from the year-ago quarter’s figure.
 
The consensus mark for revenues is pegged at $83.7 million, indicating a rise of 10.7% from the year-earlier quarter’s actuals. In the last reported quarter, GILT’s earnings beat the Zacks Consensus Estimate by 75%. Shares of the company have soared 64.3% in the past six months compared with the Satellite and Communication industry's growth of 56.5%.

Zacks Investment Research
Image Source: Zacks Investment Research

Factors at Play

Increasing defense sector engagement through lucrative deal wins is likely to have been a significant contributor to Gilat's revenue stream. GILT is witnessing healthy demand for defense SATCOM solutions, driven by the rise of NGSO and global geopolitical developments. With its advanced ground segment products and solutions, the firm is well-equipped to meet this growing market need. In October 2024, GILT won a $4 million award for its U.S. subsidiary, Gilat DataPath, for DKET 3421 terminals from the U.S. Department of Defense (DoD). 

In addition, it secured about $5 million in contracts from multiple U.S. defense organizations for its advanced SATCOM technologies and services, enhancing mission-critical connectivity worldwide.

Gilat has been active in expanding its market presence through strategic acquisitions and partnerships. The company’s acquisition of DataPath in 2023 has been a major driving force. Gilat DataPath is providing technical and field services across Europe, the Middle East and the United States to support critical connectivity needs for U.S. defense end users. GILT is leveraging cross-sell synergies between Gilat DataPath and its global sales team, creating new opportunities and building a pipeline of potential contracts.

Gilat's efforts to expand its in-flight connectivity (IFC) business are likely to have driven its top-line and bottom-line performance in the fourth quarter. In December 2024, the company received more than $18 million in orders for IFC solutions, primarily for Gilat SkyEdge platforms, related services and SSPAs, with delivery set for the next 12 months. Gilat’s adaptable architecture ensures reliable satellite connectivity, facilitating the fast growth of IFC networks.

However, the company's decision to end its operations in Russia due to the limitations and restrictions on business activities there is weighing on its 2024 financial view. GILT has tightened its revenue guidance to $305-$315 million, which represents a 17% year-over-year improvement at the midpoint. The prior view was $305-$325 million, representing an 18% year-over-year growth at midpoint.

Key Recent Developments

Gilat's commitment to innovation is evident in its recent developments. 

In January 2025, Gilat DataPath secured $4 million in global defense contracts for CCT200, CCT120 & QCT90 portable satellite terminals to be delivered over the next year. The subsidiary also won more than $5 million in contracts from the U.S. DoD and global defense forces for DKET terminals and FSR support. The company received more than $3 million in orders for its Gateway Solid State Power Amplifiers (SSPAs) to support Low Earth Orbit (LEO) constellations, highlighting its role in advancing satellite communication technologies.

In January 2025, Gilat closed the deal to acquire Stellar Blu Solutions LLC (“Stellar Blu”), a U.S.-based provider of advanced SATCOM terminal solutions and satellite connectivity. This move is set to bolster Gilat’s position in the growing IFC market. With Stellar Blu’s strong backlog, it anticipates annual revenues from the acquisition to range between $120 million and $150 million by 2025. Also, the company expects the transaction to positively impact its non-GAAP results for 2025. Once Stellar Blu reaches its planned manufacturing capacity, projected for the second half of 2025, its EBITDA margin is expected to exceed 10%.

In the same month, Gilat also teamed up with Hispasat, playing a crucial role in Southern Linc’s disaster recovery operations caused by Hurricane Helene. By using Hispasat's satellite capacity and Gilat's advanced networking technology, the partnership delivered a seamless and robust communication network that backed the disaster recovery operations of affected zones. 

Top satellite operators use Gilat’s advanced SkyEdge technology for strong, high-performance connectivity across multiple constellations. SkyEdge supports maritime, cellular backhaul and enterprise solutions. In January, it received $9 million in orders from major satellite operators for its SkyEdge IV and SkyEdge II-c satellite communications platforms and services.

What Our Model Predicts

Our proven model does not conclusively predict an earnings beat for Gilat this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Earnings ESP: GILT has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: GILT currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Airbnb (ABNB - Free Report) has an Earnings ESP of +25.59% and a Zacks Rank #3 at present. Airbnb is set to report fourth-quarter 2024 results on Feb. 13. The Zacks Consensus Estimate for ABNB’s to-be-reported quarter’s earnings and revenues is pegged at 63 cents per share and $2.42 billion, respectively. 

ABNB shares have lost 12.2% in the trailing 12 months.

The Earnings ESP for Zillow Group, Inc. (ZG - Free Report) is +15.52% and carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb. 11. The Zacks Consensus Estimate for ZG’s to-be-reported quarter’s earnings and revenues is pegged at 29 cents per share and $540.6 million, respectively. 

ZG shares have gained 57.4% in the trailing 12 months.

Twilio Inc. (TWLO - Free Report) is set to release quarterly numbers on Feb. 13. It has an Earnings ESP of +3.28% and sports a Zacks Rank #1. The Zacks Consensus Estimate for TWLO’s to-be-reported quarter’s earnings and revenues is pegged at $1.02 per share and $1.17 billion, respectively. 

TWLO shares have gained 104.6% in the trailing 12 months.

 


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in