Gilat Satellite Networks Ltd. GILT is scheduled to report first-quarter 2025 results on May 19.

The Zacks Consensus Estimate for first-quarter earnings per share (EPS) has been steady at 7 cents in the past 60 days, suggesting a decline of 36.4% from the year-ago quarter’s figure.

The consensus mark for revenues is pegged at $107 million, indicating a rise of 40.6% from the year-earlier quarter’s actuals. 

GILT’s earnings beat the Zacks Consensus Estimate in the last two quarters with the average surprise being 41%. Shares of the company have gained 19.9% in the past six months against the Satellite and Communication industry's decline of 5.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Zacks Investment Research

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Factors at Play

Gilat’s top line is likely to have gained from growing investments in the defense sector through high-value deal wins. Demand for its defense SATCOM solutions remains robust, fueled by the rise of NGSO constellations and shifting global geopolitical dynamics. Backed by its advanced ground segment technologies, Gilat is well-positioned to capitalize on this expanding market opportunity. In March 2025, it won a $6 million order from a military group in the Asia-Pacific region for its SkyEdge II-c platform. The solution will support both fixed and mobile sites, providing secure and reliable satellite communication with advanced cyber protection.

During the quarter, the company launched a new Defense Division to meet the growing demand for government and defense SATCOM solutions. It offers secure, quick-to-deploy systems for military, homeland security and government use, with a focus on supporting the U.S. Department of Defense (“DoD”) and allied forces globally. In April, GILT’s newly formed defense wing won a $23 million contract, spanning five years, to support Satellite Transportable Terminal units used by the U.S. DoD. 

Gilat has been on an acquisition spree to unlock revenue streams and augment its market footprint. Its recent acquisitions, notably Stellar Blu Solutions (January 2025) and DataPath, have bolstered its presence in the in-flight connectivity (IFC) and defense sectors. The Stellar Blu acquisition is anticipated to contribute between $120 million and $150 million in revenue for 2025, aligning with Gilat's strategy to expand in the IFC market. 

Synergies stemming from the Stellar Blu buyout are likely to have aided Gilat’s ability to offer advanced multi-orbit ESA solutions and strengthened its position in the rapidly emerging commercial aviation market. The company's involvement in the Low Earth Orbit (LEO) market and collaborations with entities like OneWeb and Iris Square also highlight its commitment to next-generation satellite communications. Recently, it concluded a series of test flights for its ESR-2030Ku ESA. The ESR-2030Ku is a compact, low-power, full-duplex aero ESA tailored for the OneWeb network.

Story Continues

Gilat Satellite Networks Ltd. Price and EPS SurpriseGilat Satellite Networks Ltd. Price and EPS Surprise

Gilat Satellite Networks Ltd. price-eps-surprise | Gilat Satellite Networks Ltd. Quote

To further accelerate growth, Gilat plans to increase investments in R&D, sales and marketing within its Defense segment. This strategic move will allow the company to capitalize on emerging opportunities more efficiently while solidifying its foothold in satellite communications. However, increased spending is likely to hurt its margin performance in the to-be-reported quarter. Challenges such as production ramp-up for new products and geopolitical risks are added concerns.

Key Recent Developments

In April 2025, Gilat Defense secured a contract worth more than $11 million for its DKET 3420 terminals. These mobile satellite communication units are built to provide reliable, scalable and flexible connectivity for essential missions.

In February 2025, Gilat announced an investment of up to $3.5 million in Crosense, a startup focused on drone detection and tracking. The move supports Gilat’s strategy to grow in the Homeland Security and Defense sectors and shows strong industry confidence in Crosense’s technology.

What Our Model Predicts

Our proven model does not conclusively predict an earnings beat for Gilat this time around. The combination of a positive Earnings ESP   and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Earnings ESP: GILT has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: GILT currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.

Ralph Lauren RL has an Earnings ESP of +2.72% and a Zacks Rank #3 at present. Ralph Lauren is set to report its fourth-quarter fiscal 2025 results on May 22.

The Zacks Consensus Estimate for revenues and earnings is pegged at $1.63 billion and $1.96 per share, respectively. Shares of RL have appreciated 16.6% year to date. 

NetApp NTAP currently has an Earnings ESP of +0.35% and a Zacks Rank #3. It is set to release its quarterly results on May 29.

The Zacks Consensus Estimate for NTAP’s fourth-quarter fiscal 2025 earnings per share is pegged at $1.89, and quarterly revenues are pegged at $1.73 billion. Shares of NTAP declined 9.7% in the past year.

Dollar General Corporation DG currently has an Earnings ESP of +4.01% and a Zacks Rank #3. It is set to release its quarterly results on June 3.

The Zacks Consensus Estimate for DG’s first-quarter fiscal 2025 earnings per share is pegged at $1.46, and quarterly revenues are pegged at $10.26 billion. Dollar General has a trailing four-quarter earnings surprise of 1.2%, on average.

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Gilat Satellite Networks Ltd. (GILT):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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