Shares of Gilat Satellite Networks (NASDAQ:GILT) tumbled today after the company reported disappointing fourth-quarter 2020 results. The tech stock was down 10.7% at the close on Tuesday.
Fourth-quarter revenue of $42.6 million was down significantly compared to the $78.3 million in sales in the year-ago quarter. Additionally, Gilat posted an adjusted loss per diluted share of $0.03 in the quarter, compared to earnings of $0.16 in the year-ago quarter.
CEO Adi Sfadia said in a press release: “I am very encouraged by our strong bookings in the second half of 2020 which have continued into 2021, as well as the enormous investments targeting our industry. Despite my belief that the pandemic may still effect our 2021 operation to some extent, I am confident that our 2021 operating results will be materially better than those of 2020.”
The company’s results for the full-year 2020 didn’t do much to impress investors, either. Sales were $165.9 million, down 37% from 2019. Gilat reported an adjusted loss of $0.30 per diluted share for the full year, compared to earnings of $0.44 in 2019.
Gilat’s stock has been anything but predictable over the past couple of months. The company’s share price started climbing in mid-January after the announcement of new contracts and, even with today’s drop, is up an astonishing 192% year to date. With the stock prone to big swings right now, investors may want to be cautious when considering investing in this company.
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