Why Gilat Satellite Networks Stock Crashed Today
Key Points
Gilat Satellite beat on earnings but missed on sales in Q1.
Despite the miss, Gilat was able to maintain sales guidance for 13% growth this year.
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Gilat Satellite Networks (NASDAQ: GILT) stock tripled over the past year, just one of several so-called "space stocks" that benefited from investor hype ahead of the forthcoming SpaceX IPO.
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Gilat shares crashed to Earth this morning, falling 22.5% through 10:35 a.m. ET after beating on earnings but missing on sales last night. Analysts had forecast Gilat to earn $0.11 per share on sales of $114.4 million. Gilat actually earned $0.18 per share -- but could muster up only $110.5 million in sales.
Image source: Getty Images.
Gilat Satellite Q1 earnings
Gilat's numbers weren't objectively bad, however. The Israeli space company grew sales 20% year over year in Q1, and reversed year-ago operating and net losses to earn profits this time. Earnings per share calculated under generally accepted accounting principles (GAAP) were $0.07, versus an $0.11-per-share loss in Q1 2025 -- not quite as good as the non-GAAP profit noted above, but definitely an improvement.
Multiple small (seven- and eight-figure) satellite communications contract wins in the quarter helped Gilat achieve "strong" backlog and pipeline of work to be done, as CEO Adi Sfadia averred. Good enough for the company to maintain its full-year outlook for 2026 despite the sales miss -- but not good enough to raise it.
What's next for Gilat stock?
What exactly is this guidance that Gilat maintained? Management didn't repeat it, but digging back through company filings on the SEC's website, it appears that at last report, Gilat was guiding for between $500 million and $520 million in revenue this year -- 13% year-over-year growth. That's about what Wall Street was expecting, but slower growth than Gilat achieved in Q1.
It's probably also the reason Gilat stock is down today.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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