Gilat Satellite Networks Posts Q3 Profit Leap, Tightens Revenue Forecast

Gilat Satellite Networks Ltd GILT reported third-quarter FY23 revenue growth of 6% year-on-year to $63.9 million, missing the consensus of $67.9 million. 

Adjusted operating income was $6.1 million versus $2.4 million a year ago.

Adjusted EPS of $0.08 beat the consensus of $0.04. 

Gilat held $100.3 million in cash and equivalents. 

Adi Sfadia, Gilat's CEO, said, "We reported significantly improved profitability, including Adjusted EBITDA, demonstrating the operating leverage inherent in our business. The ongoing good performance was due to the continued growing interest in our solutions as well as advancements in the satellite communications space in general."

Outlook: Gilat narrowed FY23 revenue to $265 million-$275 million (prior $265 million-$285 million) and a consensus of $270.42 million.

The company raised operating income guidance to $29 million-$31 million (prior $18 million-$22 million) and adjusted EBITDA guidance to $35 million-$37 million (prior $33 million-$37 million).

Price Action: GILT shares were down 8.1% to $5.90 at last check Tuesday.

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