Kratos Defense & Security Solutions (Nasdaq: KTOS ) reported earnings on Nov. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Kratos Defense & Security Solutions beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Gross margins dropped, operating margins contracted, net margins increased.
Kratos Defense & Security Solutions reported revenue of $276.3 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $257.3 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $211.0 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 $0.18. The six earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS were -$0.08 for Q3 against -$0.22 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 26.8%, 170 basis points worse than the prior-year quarter. Operating margin was 5.2%, 130 basis points worse than the prior-year quarter. Net margin was -1.5%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $272.8 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $961.5 million. The average EPS estimate is $0.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 137 members out of 144 rating the stock outperform, and seven members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Kratos Defense & Security Solutions a green thumbs-up, and one 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 $9.38.
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