Why Gilat Satellite Networks Stock Fell Today

What happened

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. 

So what 

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.  

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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. 

Now what 

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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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

View more information: https://www.fool.com/investing/2021/02/16/why-gilat-satellite-networks-stock-fell-today/

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