Key insights
- Boeing will offer Gilat's Sidewinder antenna as a line-fit solution for in-flight connectivity. This simplifies installation and reduces maintenance. Gilat has shown strong revenue growth but recent share declines. While the deal is positive for Gilat, its impact on the broader US equity market is minimal, primarily benefiting the satellite and aviation sectors.
PETAH TIKVA, Israel - Gilat Satellite Networks Ltd. (NASDAQ:GILT, TASE:GILT) announced today that it reached a milestone with Boeing Company to offer Gilat’s Sidewinder electronically steered antenna as a line-fit solution for in-flight connectivity service providers. The announcement comes as the $1.16 billion market cap company trades near its 52-week high, though InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value.
Boeing will offer line-fit Sidewinder terminal installations through in-flight connectivity integration partners, according to a press release statement. The arrangement allows airlines to install the connectivity system during aircraft manufacturing rather than through retrofit programs.
The Sidewinder antenna uses electronically steered antenna technology and supports multiple satellite orbits. The system is designed to be installed as original equipment on aircraft.
"Partnering with Boeing for this line-fit program is a true honor and reflects our focus on bringing advanced connectivity solutions to the aviation market," said Ron Levin, President of Gilat’s Commercial Division.
Gilat stated the compact antenna architecture simplifies installation and reduces maintenance requirements compared to retrofit installations. The company described the system as having an open model without vendor lock-in requirements.
Gilat Satellite Networks develops satellite-based broadband communications technology. The company operates through its Commercial and Defense Divisions and owns subsidiaries including Gilat Wavestream, Gilat DataPath, and Gilat Stellar Blu. The company has demonstrated strong momentum with revenue growth of 46% over the last twelve months, though shares have declined 22.75% in the past week despite posting a remarkable 157% return over the past year. According to InvestingPro Tips, the company remains profitable and analysts predict continued profitability this year.
The company’s products include satellite modems, terminals, antennas, amplifiers, and ground systems for applications including government, defense, in-flight connectivity, cellular backhaul, and enterprise customers.
In other recent news, Gilat Satellite Networks Ltd. reported its first-quarter results, which showed a mixed performance. The company surpassed earnings expectations, indicating a stronger-than-anticipated bottom line. However, revenue figures did not meet projections, which drew attention from investors. Despite the earnings beat, the revenue shortfall seemed to be a focal point for the market. The company also provided guidance that aligned with previous expectations. These developments come as analysts continue to assess the company’s financial trajectory. The mixed results highlight the ongoing challenges and opportunities facing Gilat Satellite Networks in the current market environment.
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