Strength Seen in Gilat (GILT): Can Its 9.8% Jump Turn into More Strength?

Gilat Satellite (GILT Quick QuoteGILT – Free Report) shares soared 9.8% in the last trading session to close at $6.70. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 0.2% gain over the past four weeks.

The increase in share price can be attributed to the lucrative deals that the company secured over the past week. Recently, Gilat won $9 million in orders from key satellite operators for its SkyEdge IV and SkyEdge II-c communication platforms, with delivery planned in the next year. Top satellite operators rely on Gilat’s SkyEdge technology for smooth connectivity across satellite constellations, supporting applications like maritime, cellular backhaul, and enterprise solutions. In December 30, 2024, it received over $18 million in orders for its flagship in-flight connectivity (IFC) solutions, including SkyEdge platforms, services, and SSPAs, with delivery scheduled within the next year. 

Strength in the defense sector bodes well for Gilat as demand for defense SATCOM solutions grows due to NGSO expansion and geopolitical events. The company has recently settled the Stellar Blu Solutions buyout, which is a premium provider of advanced SATCOM terminal solutions and is expected to enhance its IFC portfolio. Gilat anticipates Stellar Blu will generate $120-$150 million in revenue in 2025, driven by a strong backlog. The acquisition is expected to boost non-GAAP results, and once Stellar Blu hits full manufacturing capacity in late 2025, its EBITDA margin is projected to exceed 10%.

In the last reported quarter, Gilat’s revenues soared 17% year over year to $74.6 million driven by acquisition synergy and strong demand for defense and IFC solutions.

This satellite broadband communications company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +27.3%. Revenues are expected to be $83.7 million, up 10.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Gilat, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GILT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Gilat belongs to the Zacks Satellite and Communication industry. Another stock from the same industry, Globalstar (GSAT Quick QuoteGSAT – Free Report) , closed the last trading session 0.5% lower at $2.19. Over the past month, GSAT has returned -0.5%.

Globalstar’s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company’s year-ago EPS, this represents a change of +100%. Globalstar currently boasts a Zacks Rank of #3 (Hold).