Kratos Defense & Security Solutions (Nasdaq: KTOS) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 24 (Q2), Kratos Defense & Security Solutions missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share increased.

Margins contracted across the board.

Revenue details
 Kratos Defense & Security Solutions recorded revenue of $219.8 million. The eight analysts polled by S&P Capital IQ predicted a top line of $225.7 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $171.1 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 $0.06. The three earnings estimates compiled by S&P Capital IQ forecast $0.14 per share. GAAP EPS were -$0.42 for Q2 versus -$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.

Margin details
 For the quarter, gross margin was 26.3%, 20 basis points worse than the prior-year quarter. Operating margin was 4.0%, 210 basis points worse than the prior-year quarter. Net margin was -7.8%, 480 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $261.3 million. On the bottom line, the average EPS estimate is $0.21.

Next year's average estimate for revenue is $983.1 million. The average EPS estimate is $0.98.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 136 members out of 145 rating the stock outperform, and nine members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $11.29.

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