Gilat slides 8% after Q1 revenue misses by $2.7M despite EPS beat
Gilat Satellite Networks reported Q1 revenue of $55.3 million, missing analyst forecasts by $2.7 million, while adjusted EPS of $0.17 topped consensus by $0.03. Shares fell 8% in early trading on the revenue shortfall despite the earnings beat.
1. Q1 Financial Results
Gilat posted adjusted EPS of $0.17 for the first quarter, exceeding consensus estimates of $0.14. Revenue reached $55.3 million, falling short of analyst expectations by $2.7 million.
2. Revenue Miss Analysis
The revenue shortfall was attributed primarily to slower-than-expected equipment sales in its network solutions division and a delay in one major government contract. Services revenue grew modestly but couldn’t offset the drop in hardware shipments.
3. Market Reaction
Shares declined 8% in early trading as investors weighed the impact of the revenue miss against the earnings beat. Trading volume surged, reflecting heightened investor concern over top-line growth prospects.