Israeli satellite communications company Gilat Satellite Networks (GILT 4.89%) stock tumbled 19.3% through 10:45 a.m. ET Tuesday despite crushing analyst forecasts for Q4 2025 results this morning.
Heading into its Q4 report, analysts estimated Gilat would earn $0.14 per share on just $78.1 million in revenue. In fact, Gilat earned $0.20 per share on sales of $137 million, easily beating on both the top and bottom lines.
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Gilat Q4 earnings
But if that's the case, then why is Gilat Satellite stock down today -- and down so much?
Earnings could be part of the problem. Gilat's Q4 sales surged 75%, but operating income was basically flat year over year. Adjusted -- which is to say, non-GAAP -- earnings may have beaten expectations, but earnings as calculated according to generally accepted accounting principles (GAAP) were only $0.13 for the quarter, a 38% decline year over year.
For the full year fiscal 2025, Gilat reported sales up 48%, operating profit down 15%, and net income down 23%. So not all of Gilat's news today was "good."
NASDAQ: GILT
Key Data Points
Is Gilat stock a sell?
Turning to guidance, Gilat expects to grow sales 30% to about $510 million in revenue in 2026, with $61 to $66 million in "adjusted EBITDA" (another non-GAAP metric), and no word on either GAAP profits or free cash flow.
CEO Adi Sfadia says Gilat had a "strong" Q4 and a "solid" 2025, and the company is clearly anticipating strong sales growth in 2026. That said, the lack of clear earnings guidance for 2026 and the fact that Gilat stock currently costs more than 45 times trailing earnings (with earnings on the decline) tells me this stock is more likely a sell than a buy.
