Gilat Satellite Networks Ltd. GILT reported fourth-quarter 2024 adjusted earnings per share (EPS) of 15 cents compared with 11 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 7.14%.

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Revenues for the quarter reached $78.1 million, up 3% from a year ago. The rise is driven by steady traction in the defense and in-flight connectivity (IFC) sectors, securing a higher volume of orders and awards. However, the top line missed the consensus mark by 6.7%

The company is expanding its portfolio of secure satellite solutions tailored to government and military applications. Gilat’s strong focus on the U.S. Department of Defense (DoD) presents a significant growth opportunity in the long term. GILT’s acquisition of Stellar Blu further strengthens its position in the IFC market, enabling it to offer state-of-the-art Electronically Steerable Antennas and multi-orbit solutions. Its IFC solutions for GEO, LEO and multi-orbit networks are poised to meet the growing demand for inflight connectivity from airlines and passengers.

Gilat Satellite Networks Ltd. Price, Consensus and EPS Surprise

Gilat Satellite Networks Ltd. price-consensus-eps-surprise-chart | Gilat Satellite Networks Ltd. Quote

Following the announcement, GILT’s shares lost 4% and closed trading at $7.10. Shares of the company have soared 52.7% in the past six months compared with the Satellite and Communication industry's growth of 29.7%.

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Segmental Results

Satellite Network revenues (62.8% of net sales) came in at $49.1 million compared with $53.5 million in the prior-year quarter. The decrease was mainly caused by the end of its operations in Russia.

Integrated Solution revenues (22.1%) increased 82.1% year over year to $17.3 million. Strength in the defense market contributed to the upside.

Network Infrastructure And Services revenues (15.1%) fell 6.4% year over year to $11.8 million.

Other Details

Non-GAAP operating income for the quarter was $9.7 million compared with $6.1 million in the previous-year quarter.

Non-GAAP operating expenses totaled $21.9 million, down 6.4% year over year. 

Adjusted EBITDA soared 30% year over year to $12.1 million.

Cash Flow & Liquidity

In the quarter under discussion, GILT generated $16.3 million of net cash from operating activities compared with $10 million in the prior-year quarter.

As of Dec. 31, 2024, the company had $119.4 million in cash and cash equivalents compared with $104 million as of Dec. 31, 2023. The growth was primarily fueled by Gilat's ongoing operations and the arbitration process in Peru.

2025 Strategic Outlook

Management projects 2025 revenues between $415 and $455 million, with adjusted EBITDA expected to range from $47 million to $53 million.

To further accelerate growth, Gilat plans to increase investments in R&D, sales and marketing within its Defense segment. This strategic move will allow the company to capitalize on emerging opportunities more efficiently while solidifying its foothold in satellite communications.

As part of its growth strategy, Gilat has restructured its organization into three primary divisions effective Jan. 1, 2025. It will present financial results under three categories - Gilat Defense, Gilat Commercial and Gilat Peru. The new structure improves focus on key markets and gives investors better insight into Gilat’s business and growth opportunities.

GILT’s Zacks Rank

Gilat currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies

Sensata Technologies Holding plc ST reported fourth-quarter 2024 EPS of 76 cents compared with 81 cents a year ago. The bottom line met the Zacks Consensus Estimate.

In the past year, shares of ST have lost 20.2%.

BCE Inc. BCE reported fourth-quarter 2024 adjusted EPS of C$0.79 (56 cents) compared with C$0.76 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 50 cents.

Shares of BCE have plunged 38.3% in the past year. 

PTC Inc PTC reported first-quarter fiscal 2025 non-GAAP EPS of $1.10, beating the Zacks Consensus Estimate by 20.9%. The company reported non-GAAP EPS of $1.11 in the prior-year quarter. 

In the past year, shares of PTC have declined 5.5%.

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