Kratos Defense & Security Solutions (Nasdaq: KTOS) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Kratos Defense & Security Solutions beat expectations on revenues and met expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
 Kratos Defense & Security Solutions reported revenue of $252.8 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $236.9 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $209.5 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 five earnings estimates compiled by S&P Capital IQ averaged $0.06 per share. Non-GAAP EPS were $0.06 for Q1 against -$0.09 per share for the prior-year quarter. GAAP EPS were -$0.18 for Q1 compared to -$0.09 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 26.0%, 140 basis points worse than the prior-year quarter. Operating margin was 4.6%, 20 basis points worse than the prior-year quarter. Net margin was -4.1%, 270 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $239.4 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $975.2 million. The average EPS estimate is $0.44.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 148 members out of 156 rating the stock outperform, and eight members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 $7.79.

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