Investors in Gilat Satellite Networks Ltd. (NASDAQ:GILT) had a good week, as its shares rose 2.0% to close at US$5.58 following the release of its first-quarter results. It looks like a credible result overall - although revenues of US$76m were what the analyst expected, Gilat Satellite Networks surprised by delivering a (statutory) profit of US$0.09 per share, an impressive 50% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Gilat Satellite Networks

Taking into account the latest results, the consensus forecast from Gilat Satellite Networks' solitary analyst is for revenues of US$313.9m in 2024. This reflects a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 25% to US$0.30 in the same period. Before this earnings report, the analyst had been forecasting revenues of US$315.2m and earnings per share (EPS) of US$0.33 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 21% to US$8.50, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gilat Satellite Networks' past performance and to peers in the same industry. The analyst is definitely expecting Gilat Satellite Networks' growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gilat Satellite Networks is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Gilat Satellite Networks going out as far as 2025, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Gilat Satellite Networks that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.