Supply delays and industry slowdowns lead Gilat to lower revenue forecast for this year - stock falls
Gilat Satellite Networks lowered its annual revenue forecast to $455-475 million due to supply delays and industry slowdowns. Third-quarter results showed lower-than-expected revenue but higher profit. CEO Adi Sfadia highlighted the shift to the defense sector, which grew 53%.
Gilat Satellite Networks lowered its annual revenue forecast for 2026, citing supply delays and industry slowdowns. Third-quarter results presented a mixed picture: revenue of $116 million, down 1.2% year-over-year and below expectations, but GAAP net profit of $8.7 million, up 7%. Earnings per share were 18 cents, 4 cents above analyst estimates. The full-year revenue forecast was cut from $500-520 million to $455-475 million. CEO Adi Sfadia attributed the decline to exchange rates and a provision for doubtful debts following Hughes' creditor protection filing. He emphasized the continued focus on the defense sector, which grew 53% in revenue year-over-year, and the acquisition of Comtec, expected to double defense revenue by 2027. The stock has lost over 60% of its value since the start of the year. Analyst Lior Vider noted that the forecast cut reflects challenges in the civilian market, but the defense focus is proving successful.