Kratos (KTOS) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Core Insights - Kratos (KTOS) reported revenue of $283.1 million for the quarter ended December 2024, reflecting a 3.4% increase year-over-year, with EPS at $0.13 compared to $0.12 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $288.31 million, resulting in a surprise of -1.81%, while the EPS exceeded expectations by 44.44% against a consensus estimate of $0.09 [1] Revenue Breakdown - Kratos Government Solutions generated $222 million in revenue, slightly below the average estimate of $223.42 million, marking a year-over-year increase of 1.7% [4] - Unmanned Systems revenue was reported at $61.10 million, lower than the estimated $66.54 million, but showed a 10.3% increase compared to the previous year [4] - Product sales reached $176.60 million, surpassing the average estimate of $170.05 million, with a year-over-year growth of 2.1% [4] - Service revenues totaled $106.50 million, below the estimated $117.06 million, but represented a 5.7% increase year-over-year [4] Profitability Metrics - Gross profit from service revenues was $29.40 million, compared to the average estimate of $31.72 million [4] - Gross profit from product sales was reported at $40.40 million, lower than the estimated $42.07 million [4] - Operating income for Unmanned Systems was -$0.70 million, significantly below the average estimate of $2.19 million [4] - Operating income for Kratos Government Solutions was $11 million, compared to the average estimate of $15.27 million [4] - Unallocated corporate expense, net, was -$7.30 million, worse than the average estimate of -$4.35 million [4] Stock Performance - Over the past month, Kratos shares have declined by 25%, contrasting with the Zacks S&P 500 composite's decrease of 2.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]