Core Insights - Mercury Systems (MRCY) reported revenue of $204.43 million for the quarter ended September 2024, marking a year-over-year increase of 13% and exceeding the Zacks Consensus Estimate by 12.90% [1] - The company achieved an EPS of $0.04, a significant improvement from -$0.24 a year ago, resulting in an EPS surprise of 130.77% compared to the consensus estimate of -$0.13 [1] Revenue Performance by Segment - Net Revenue from Sensor & Effector - Radar was $33.75 million, surpassing the average estimate of $23.78 million, reflecting an 18.2% year-over-year increase [3] - Net Revenue from Sensor & Effector - Electronic Warfare was $26.35 million, below the average estimate of $29.01 million, indicating a decline of 6.4% year-over-year [3] - Net Revenue from Other segments reached $32.69 million, significantly exceeding the average estimate of $14.63 million, with a remarkable year-over-year change of 174.2% [3] - Total Net Revenue from Sensor & Effector was $86.46 million, above the average estimate of $76.68 million, showing an 11% year-over-year increase [3] - Net Revenue from C4I was $85.28 million, slightly below the average estimate of $89.83 million, reflecting a year-over-year decline of 6.5% [3] - Net Revenue from Sensor & Effector - Other Sensor & Effector was $26.37 million, exceeding the average estimate of $23.90 million, with a year-over-year increase of 24.6% [3] Stock Performance - Over the past month, shares of Mercury Systems have declined by 9.5%, compared to a 0.5% change in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Mercury Systems (MRCY) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.13 per share. This compares to loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 130.77%. A quarter ago, it was expected that this maker of processing systems and software would post a loss of $0.07 per share when it actually produced earnings of $0.23, delivering a surprise of 428.57%.Ov ...

Core Insights - Mercury Systems, Inc. reported Q1 FY25 bookings of $247.7 million, a 29% increase year-over-year, with a book-to-bill ratio of 1.21 [2][3] - Revenue for Q1 FY25 was $204.4 million, reflecting a 13% year-over-year growth [2][3] - The company recorded a GAAP net loss of $17.5 million, significantly improved from a loss of $36.7 million in the same quarter last year [4][17] - Adjusted EBITDA for the quarter was $21.5 million, a substantial increase from $2.0 million in Q1 FY24 [5][19] - The total backlog reached a record $1.34 billion, up 16% year-over-year, with $777.0 million expected to be recognized as revenue within the next 12 months [7] Financial Performance - Total revenues for Q1 FY25 were $204.4 million, compared to $181.0 million in Q1 FY24 [3] - The adjusted EBITDA margin for Q1 FY25 was 10.5%, indicating improved operational efficiency [2] - Cash flows used in operating activities were $14.7 million, a decrease from $39.1 million in Q1 FY24, while free cash flow was $(20.9) million compared to $(47.1) million in the prior year [6][36] Backlog and Future Outlook - The total backlog as of September 27, 2024, was $1.34 billion, an increase of $187.8 million from the previous year [7] - The company anticipates continued organic growth with expanding margins and robust free cash flow, as stated by the CEO [2]

Core Viewpoint - Mercury Systems, Inc. has been awarded a five-year contract worth up to $131.3 million from the U.S. Naval Air Systems Command to provide secure data transfer systems for naval aircraft, continuing its long-standing partnership with the Navy [1][2]. Group 1: Contract Details - The contract is an indefinite delivery/indefinite quantity agreement, allowing Mercury to deliver upgraded Advanced Data Transfer Systems (ADTS) that include the company's JDAR encryption module [1]. - Mercury has been supplying ADTS and components to the Navy since 2017, enhancing operational readiness for various rotary-wing and fixed-wing aircraft [1]. Group 2: Product Features - The ADTS features include up to 3 TB solid-state memory modules with read/write transfer rates of up to 450/300 MB/s, optional crash survivable memory modules, and various interface capabilities [2]. - The systems meet information assurance requirements and provide manual zeroize capabilities for enhanced security [2]. Group 3: Company Overview - Mercury Systems is focused on delivering mission-critical processing power for aerospace and defense missions, with products deployed in over 300 programs across 35 countries [3]. - The company is headquartered in Andover, Massachusetts, and operates 23 locations worldwide [3].

ANDOVER, Mass., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Mercury Systems Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing power to the edge, will release its first quarter fiscal year 2025 financial results after the market close on Tuesday, November 5, 2024. Management will host a conference call and simultaneous webcast at 5:00 p.m. ET on the same day to discuss Mercury's quarterly financial results, business highlights, and outlook. In addition, Company represent ...

Core Viewpoint - Mercury Systems reported strong Q4 fiscal 2024 results, with both earnings and revenues exceeding estimates, indicating solid operational performance despite a slight decline in revenue year-over-year [2][3]. Financial Performance - Non-GAAP earnings were 23 cents per share, significantly surpassing the Zacks Consensus Estimate of a loss of 7 cents, marking a 109.1% increase year-over-year [2]. - Non-GAAP revenues decreased by 1.8% to $248.6 million, but still beat the consensus mark by 11.7% [2]. - Gross profit increased to $73.2 million, up 8.6% year-over-year, with gross margin expanding by 280 basis points to 29.5% [5]. - Adjusted EBITDA rose to $31.16 million, reflecting a 42.1% year-over-year increase, with the margin expanding by 390 basis points to 12.5% [5]. Bookings and Backlog - Total bookings for the quarter were $284.4 million, resulting in a book-to-bill ratio of 1.14 [4]. - Total backlog as of June 28, 2024, was $1.33 billion, an increase of $185.9 million from the previous year, with $758.9 million expected to be recognized as revenue within the next 12 months [4]. Cash Flow and Balance Sheet - Cash and cash equivalents increased to $180.52 million from $142.6 million as of March 29, 2024 [6]. - Operating cash flows for Q4 were $71.8 million, a significant rise from $12.6 million in the same quarter last year, with free cash flow reaching $61.4 million compared to $3.8 million previously [6]. Market Sentiment and Estimates - There has been a downward trend in estimates revisions, with the consensus estimate shifting by 15.91% [7]. - Mercury Systems holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [9].

Where estimates-beating companies go, price target-raising analysts follow. Mercury Systems (MRCY 0.85%) stock appeared set to lock in a double-digit gain in share price this week. According to data compiled by S&P Global Market Intelligence, as of the wee hours Friday morning the defense communications company's shares were up by nearly 13% week to date. A strong earnings report was the key factor in that rise. Analyst estimates were obliterated Mercury published its fourth quarter of fiscal 2024 figures a ...

Core Viewpoint - Mercury Systems has shown a mixed performance in its recent financial results, with a notable increase in margins but a decline in revenues, leading to a reassessment of its stock rating and price target [1][6]. Financial Performance - In Q4 FY2024, revenues decreased by 2% to $248.6 million, contrasting with a 14% decline in full-year revenues [3][7]. - Gross margins improved by 290 basis points to 29.5% [3][7]. - Adjusted EBITDA rose by 42% to $31.2 million, while free cash flow was strong at $61.4 million [3][6]. Risk Management - The company has focused on risk retirement throughout FY2024, successfully managing to retire risks associated with several programs, leaving only four challenged programs at year-end [4][7]. - Despite skepticism regarding risk retirement, the company has made progress, with most programs either completed or on track [4][5]. Future Outlook - For FY2025 and beyond, Mercury Systems anticipates significant enhancements in margins and cash flow conversion, although some pressure from challenged programs is expected in the first half of the year [5][6]. - The current global threat environment is expected to provide substantial volume growth opportunities, supported by demand for Mercury Systems' components across over 300 defense platforms and programs [7]. Stock Rating and Valuation - The stock has performed well, but the risk profile remains elevated, leading to a hold rating despite the potential for significant upside through multiple expansions [1][6]. - EBITDA estimates for FY25 and FY26 have been revised down by approximately 11%, and free cash flow generation estimates have decreased by 35% for the current and upcoming fiscal year [6][7].

U.S. stocks traded mixed toward the end of trading, with the Dow Jones index gaining around 250 points on Wednesday. The Dow traded up 0.65% to 40,022.71 while the NASDAQ fell 0.20% to 17,153.85. The S&P 500 also rose, gaining, 0.24% to 5,447.57. Leading and Lagging Sectors Financials shares climbed by 1.1% on Tuesday. In trading on Tuesday, communication services shares fell 1.3%. Top Headline UBS Group AG UBS posted strong second-quarter earnings. UBS Group reported second-quarter FY24 sales of $11.9 bill ...

Aerospace and defense specialist Mercury Systems (NASDAQ:MRCY) — which offers advanced components, circuits, semiconductors and modules, among many other product categories — saw its shares skyrocket over 20% on Wednesday. Encouraging results tied to its fiscal fourth-quarter earnings disclosure are catapulting sentiment. Additionally, MRCY stock has benefited from surging relevancies in unmanned systems, one of Mercury's specialties. Earlier today, Mercury posted a net loss of $10.8 million or 19 cents a s ...