Core Viewpoint - Kratos Defense has shown strong financial performance in Q1 2024, with significant year-over-year growth in earnings and revenues, indicating positive momentum leading into the next earnings report [2][3][4]. Financial Performance - Adjusted earnings for Q1 2024 were 11 cents per share, an increase of 83.3% from 6 cents in the prior-year quarter, surpassing the Zacks Consensus Estimate of 5 cents by 120% [2]. - Total revenues reached $277.2 million, exceeding the Zacks Consensus Estimate of $251 million by 10.5% and reflecting a 19.6% increase from $231.8 million in the same quarter last year [3]. - Operating income was reported at $7 million, a significant rise from $0.5 million in the previous year [4]. Operational Update - Selling, general and administrative expenses rose by 12.5% year over year, while research and development expenses decreased by 5.9% [4]. - The company reported a consolidated book-to-bill ratio of 1.1-1.0, with bookings totaling $381.1 million [4]. Segmental Performance - Unmanned Systems segment saw net revenues improve by 23.8% year over year to $59.4 million [6]. - Kratos Government Solutions segment experienced a 47.9% increase in net revenues to $217.8 million compared to the previous year [6]. Financial Position - As of March 31, 2024, cash and cash equivalents totaled $338.9 million, up from $72.8 million at the end of 2023 [7]. - Long-term debt decreased to $179.4 million from $219.3 million as of December 31, 2023 [7]. Guidance - For Q2 2024, Kratos expects revenues in the range of $265-$280 million, with the Zacks Consensus Estimate at $269.8 million [8]. - The company maintains its 2024 revenue guidance of $1.13-$1.15 billion, aligning with the consensus estimate of $1.13 billion [9]. Market Position - Kratos has a Growth Score of B and a Momentum Score of A, but a lower value score of D, placing it in the bottom 40% for value investment strategy [10]. - The stock has an aggregate VGM Score of C, indicating a balanced performance across different investment strategies [10]. Industry Context - Kratos operates within the Zacks Aerospace - Defense Equipment industry, which has seen mixed performance among peers, such as Teledyne Technologies, which reported a slight revenue decline of 2.4% year-over-year [12].

In another potential scenario, a massive war in the Mideast could cause oil prices to leap to $150 per barrel or more, causing the U.S. to enter a recession. And finally, a large terrorist attack against the U.S. certainly can't be ruled out, especially because many terrorists may have entered America across its southern border. Additionally, America's involvement in the Israel-Hamas War makes a terrorist attack more likely. While "economic mayhem" is far from being my base case scenario, I can envision a f ...

Core Insights - Kratos Defense & Security Solutions, Inc. (KTOS) announced that BlueHalo showcased its OpenSpace platform at the 2024 Space Symposium, highlighting its role in the U.S. Space Force's Satellite Communication Augmentation Resource program [1] - OpenSpace is a software-defined satellite ground system that allows for rapid deployment of services, significantly reducing the time from weeks or months to minutes [2] - The global Satellite Communications market is projected to grow at a CAGR of 11.3% from 2023 to 2028, driven by increasing satellite deployment and military applications [5] Company Overview - Kratos has over 30 years of experience in providing satellite Command & Control products and services, with a strong track record in SATCOM NetOps for various sectors [6] - The company's EPOCH product offers robust satellite Command & Control capabilities for both individual satellites and large constellations [6] Industry Growth Prospects - The Satellite Communications market is experiencing growth due to factors such as increased earth observation missions, rapid digitization, and rising satellite internet services [4] - Major nations are investing heavily in satellite deployment, which is expected to bolster the market significantly [4] Peer Analysis - Other defense companies like Lockheed Martin, Airbus, and Northrop Grumman are also positioned to benefit from the growth in the Satellite Communications market [7] - Lockheed Martin has a long-term earnings growth rate of 4.1% and is expected to see a 3.2% improvement in 2024 sales [8] - Airbus has a long-term earnings growth rate of 21.4% with an 8.2% expected improvement in 2024 sales [9] - Northrop Grumman has a long-term earnings growth rate of 8.7% and a projected 4.6% improvement in 2024 sales [10] Stock Performance - In the past three months, Kratos Defense shares have increased by 15.4%, outperforming the industry's average return of 0.1% [11]

White's data shows that just one month after these signals, Kratos Defense & Security Solutions stock was higher, averaging a 6.8% pop for that time period. From its current perch, a move of similar magnitude would put the equity above the $23 region for the first time since February 2021. Options bulls are firmly in control. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 18.33 stands higher than 7 ...

Shares of Kratos Defense & Security Solutions, Inc. (KTOS) increased 5.8% to reach $19.84 on May 8, reflecting investors’ optimism following the company’s latest result release.KTOS reported first-quarter 2024 adjusted earnings of 11 cents per share, up 83.3% from 6 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of earnings of 5 cents per share by 120%.Kratos Defense reported GAAP earnings of a penny per share against a loss of 5 cents in the first quarter o ...

Alexyz3dKratos Defense & Security Solutions (NASDAQ:KTOS) reported first quarter earnings on May 7, beating analyst estimates on top and bottom line. In response to the earnings, the stock is now trading 4.9% higher. In September 2023, I upgraded Kratos stock from hold to buy and that call has worked out rather well with a 30.6% return for Kratos vs. a 16.5 jump of the S&P 500. In this report, I will be analyzing the results, discuss the Q2 2024 outlook and update my price target and rating for KTOS sto ...

The first quarter was strong, and a long-awaited drone order could be on the horizon.Kratos Defense & Security Solutions (KTOS 5.74%) delivered better-than-expected results in the first quarter and provided positive updates about some of its most important drone programs. Investors are climbing on board, sending Kratos shares up 5% as of 2:30 p.m. ET on Wednesday.A drone leader in a dangerous worldKratos is a defense contractor focused on electronics and unmanned aerial vehicles (UAVs). The company earned $ ...

Kratos (KTOS) reported $277.2 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 19.6%. EPS of $0.11 for the same period compares to $0.06 a year ago.The reported revenue represents a surprise of +10.46% over the Zacks Consensus Estimate of $250.96 million. With the consensus EPS estimate being $0.05, the EPS surprise was +120.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Kratos (KTOS) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 120%. A quarter ago, it was expected that this military contractor would post earnings of $0.08 per share when it actually produced earnings of $0.12, delivering a surprise of 50%.Over the last four quarters, the company ha ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 (State or other jurisdiction of incorporation or organization) Delaware 13-3818604 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-34460 KRATOS DEFENSE & SECURITY SO ...