GILT Stock Forecast & Price Target

Gilat Satellite Networks Ltd has demonstrated a solid financial position, concluding the third quarter of 2024 with $120 million in cash, cash equivalents, and restricted cash, reflecting a steady increase from previous quarters and the prior year. The 4Q revenue showed a year-over-year growth of 3.3%, supported by strong gross margins and operational discipline, which contributed to an improved bottom line. Furthermore, the company's robust balance sheet, coupled with a strategic shift towards higher-margin, turn-key products, positions Gilat favorably to capitalize on growth opportunities within the satellite communications market, particularly in areas such as in-flight connectivity where high-performing solutions are increasingly in demand.

Gilat Satellite Networks Ltd reported a 4Q24 revenue of $78.1 million, which was 6% below consensus estimates of $83.1 million, despite achieving GAAP EPS of $0.21 that exceeded expectations. The company has slashed its 2024 revenue guidance to a range of $305-$315 million, following disappointing performance from its acquisition of Stellar Blu, which has also suffered a loss of market leadership in the ESA segment. The cash conversion cycle showed a marginal improvement but remained a point of concern, highlighting ongoing inefficiencies within the company's operations.