Kratos Defense & Security Solutions (Nasdaq: 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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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