Kratos Defense & Security Solutions Increases Sales but Misses Revenue Estimate
Kratos Defense & Security Solutions (NAS: KTOS) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 25 (Q1), Kratos Defense & Security Solutions missed estimates on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share shrank.
Gross margin increased, operating margin shrank, and net margin grew.
Kratos Defense & Security Solutions reported revenue of $215 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $221.3 million on the same basis. GAAP-reported sales were 75% higher than the prior-year quarter's $122.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.09. The seven earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. GAAP EPS were -$0.10 for Q1 against -$0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.9%, 460 basis points better than the prior-year quarter. Operating margin was 4.2%, 170 basis points worse than the prior-year quarter. Net margin was -1.5%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $228 million. On the bottom line, the average EPS estimate is $0.
Next year's average estimate for revenue is $954.5 million. The average EPS estimate is $0.44.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 139 members rating the stock outperform and eight members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Kratos Defense & Security Solutions a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kratos Defense & Security Solutions is outperform, with an average price target of $12.33.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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