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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.