Kratos Defense & Security Solutions
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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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.