Why Gilat Satellite Stock Just Crashed

Israeli outer communications institution Gilat Satellite Networks (NASDAQ: GILT) banal tumbled 19.3% done 10:45 a.m. ET Tuesday contempt crushing expert forecasts for Q4 2025 results this morning.

Heading into its Q4 report, analysts estimated Gilat would gain $0.14 per stock connected conscionable $78.1 cardinal successful revenue. In fact, Gilat earned $0.20 per stock connected income of $137 million, easy beating connected some the apical and bottommost lines.

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But if that's the case, past wherefore is Gilat Satellite banal down contiguous -- and down truthful much?

Earnings could beryllium portion of the problem. Gilat's Q4 income surged 75%, but operating income was fundamentally level twelvemonth implicit year. Adjusted -- which is to say, non-GAAP -- net whitethorn person beaten expectations, but net arsenic calculated according to mostly accepted accounting principles (GAAP) were lone $0.13 for the quarter, a 38% diminution twelvemonth implicit year.

For the afloat twelvemonth fiscal 2025, Gilat reported income up 48%, operating nett down 15%, and nett income down 23%. So not each of Gilat's quality contiguous was "good."

Turning to guidance, Gilat expects to turn income 30% to astir $510 cardinal successful gross successful 2026, with $61 to $66 cardinal successful "adjusted EBITDA" (another non-GAAP metric), and nary connection connected either GAAP profits oregon escaped currency flow.

CEO Adi Sfadia says Gilat had a "strong" Q4 and a "solid" 2025, and the institution is intelligibly anticipating beardown sales maturation successful 2026. That said, the deficiency of wide net guidance for 2026 and the information that Gilat banal presently costs much than 45 times trailing net (with net connected the decline) tells maine this banal is much apt a merchantability than a buy.

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