Kratos Defense & Security Solutions(KTOS) ZACKS·2025-02-25 14:55Core Viewpoint - Kratos Defense & Security Solutions, Inc. (KTOS) is expected to report its fourth-quarter 2024 results on February 26, with strong revenue growth anticipated across its business segments despite higher personnel-related costs [1][2]. Group 1: Revenue Performance - The Unmanned Systems Unit is projected to show solid sales growth, driven by increased international target drone production and contributions from the STS acquisition, with quarterly revenues estimated at 223.4 million, indicating a 2.3% rise from the previous year [4][6]. - Overall, the Zacks Consensus Estimate for KTOS's total fourth-quarter revenues is pegged at $288.3 million, suggesting a 5.3% increase from the year-ago quarter [7]. Group 2: Earnings Expectations - Despite solid revenue projections, the company's earnings are expected to decline, with the Zacks Consensus Estimate for fourth-quarter earnings at 9 cents per share, a decrease of 25% from the prior year [8]. - The combination of increased bid and proposal costs, along with higher personnel-related expenses, may negatively impact the operating margin, affecting overall earnings performance [8]. Group 3: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for KTOS this quarter, as the Earnings ESP stands at 0.00%, indicating uncertainty in surpassing earnings expectations [9]. - Currently, KTOS holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other stocks in the sector [10].