PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ: NASDAQ:GILT) shares rose 2% following the announcement of its fourth-quarter earnings, which surpassed analyst expectations. The company reported an adjusted EPS of $0.11, beating the consensus estimate of $0.06.
However, the revenue for the quarter was slightly below expectations at $75.6 million compared to the analyst forecast of $75.99 million.
The company's performance in the fourth quarter showed a 4% increase in revenue compared to the $72.6 million reported in the same quarter last year. Despite the year-over-year (YoY) growth, the company experienced a decline in adjusted EBITDA, which came in at $9.4 million compared to $10.1 million in the fourth quarter of the previous year.
Gilat's CEO, Adi Sfadia, expressed satisfaction with the company's financial results, highlighting the 11% increase in annual revenue to $266 million and a significant 44% rise in adjusted EBITDA to $36.4 million. Sfadia attributed the strong performance to the company's business model and favorable product revenue mix.
Looking ahead, Gilat provided an optimistic forecast for the fiscal year 2024, projecting revenues to range between $305 to $325 million, which would represent a growth of 18% at the midpoint. This guidance is notably higher than the analyst consensus of $291.8 million.
The expected GAAP operating income is estimated to be between $15 to $19 million, with adjusted EBITDA projected to be in the range of $40 to $44 million, indicating a 15% YoY growth at the midpoint.
The positive earnings report and strong guidance have contributed to the upward movement in Gilat's stock price, reflecting investor confidence in the company's strategic direction and growth prospects. Gilat's management remains focused on leveraging the growing market interest in satellite communications and exploring additional growth opportunities, including the strategic acquisition of DataPath in the US.
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