Gilat Satellite (GILT) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.11 per share a year ago.
GILT's Q1 2025 performance is likely to have benefited from a surge in defense deals, momentum in its IFC business and steady gains from acquisition synergies.
Macro uncertainty remains a concern for the Zacks Satellite and Communication industry participants like IRDM, GSAT and GILT. Growing global connectivity needs could drive prospects in the long term.
It has been a rough start to the year for the tech sector, as companies have been hit hard by tariffs, trade tensions with China that have axed the flow of essential rare earth metals to the United States, and more. The benchmark Technology Select Sector SPDR Fund NYSEARCA: XLK, a broad proxy for the entire sector, has plunged by about 10% year-to-date (YTD) while the S&P 500 has fallen by only 5% overall during the same period.
GILT is gaining from strong strategic initiatives and recent defense deals, but intense competition poses a concern.
Gilat's diversified business segments, including Defense, Commercial, and Peru, drive robust growth and resilience, supporting a strong investment thesis. 2024 earnings projections indicate significant upward momentum, bolstered by quality metrics and strategic market positioning. Management guidance signals more topline growth coming from the defense and commercial sectors, driven by surging demand for ESAs.
GILT's defense division secured a multimillion-dollar order. Deliveries under this order are expected to commence toward the end of 2025.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
GILT secures an order valued at $6 million to supply its SkyEdge II-c platform to a military organization in the Asia-Pacific region.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
After losing some value lately, a hammer chart pattern has been formed for Gilat (GILT), indicating that the stock has found support. This, combined with an upward trend in earnings estimate revisions, could lead to a trend reversal for the stock in the near term.
Does Gilat Satellite (GILT) have what it takes to be a top stock pick for momentum investors? Let's find out.