Kratos Defense & Security Solutions
The 10-second takeaway
For the quarter ended Dec. 25 (Q4), Kratos Defense & Security Solutions missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins dropped, and net margins dropped.
Kratos Defense & Security Solutions notched revenue of $218.2 million. The seven analysts polled by S&P Capital IQ looked for revenue of $231.6 million on the same basis. GAAP reported sales were 81% higher than the prior-year quarter's $120.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.22. The two earnings estimates compiled by S&P Capital IQ forecast -$0.08 per share on the same basis. GAAP EPS were -$0.26 for Q4 versus $0.03 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 27.1%, 660 basis points better than the prior-year quarter. Operating margin was 4.3%, 360 basis points worse than the prior-year quarter. Net margin was -3.9%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $227.1 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $946.4 million. The average EPS estimate is $0.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 135 members rating the stock outperform and seven members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $15.63.
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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 of Motley 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.