Kratos Defense & Security Solutions (Nasdaq: KTOS) is expected to report Q3 earnings on Nov. 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Kratos Defense & Security Solutions's revenues will grow 21.9% and EPS will drop -280.0%.

The average estimate for revenue is $257.3 million. On the bottom line, the average EPS estimate is $0.18.

Revenue details
Last quarter, Kratos Defense & Security Solutions notched revenue of $219.8 million. 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
Last quarter, non-GAAP EPS came in at $0.06. GAAP EPS were -$0.42 for Q2 compared to -$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.

Recent performance
For the preceding 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

The full year's average estimate for revenue is $961.5 million. The average EPS estimate is $0.60.

Investor sentiment
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 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.