Gilat Satellite Networks Ltd. Just Missed Earnings; Here's What Analysts Are Forecasting Now

There's been a notable change in appetite for Gilat Satellite Networks Ltd. (NASDAQ:GILT) shares in the week since its quarterly report, with the stock down 12% to US$5.86. Revenues fell 8.1% short of expectations, at US$92m. Earnings correspondingly dipped, with Gilat Satellite Networks reporting a statutory loss of US$0.11 per share, whereas the analysts had previously modelled a profit in this period. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 2 warning signs about Gilat Satellite Networks. View them for free.

Following the latest results, Gilat Satellite Networks' four analysts are now forecasting revenues of US$430.8m in 2025. This would be a huge 34% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dive 69% to US$0.075 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$435.1m and earnings per share (EPS) of US$0.36 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

View our latest analysis for Gilat Satellite Networks

The consensus price target held steady at US$8.40, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Gilat Satellite Networks analyst has a price target of US$8.50 per share, while the most pessimistic values it at US$8.30. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Gilat Satellite Networks is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Gilat Satellite Networks' rate of growth is expected to accelerate meaningfully, with the forecast 48% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gilat Satellite Networks is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$8.40, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Gilat Satellite Networks going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Gilat Satellite Networks you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.