Kratos (KTOS) Q3 Earnings and Revenues Surpass Estimates

Core Insights - Kratos (KTOS) reported quarterly earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, and showing an increase from $0.11 per share a year ago, resulting in an earnings surprise of +16.67% [1] - The company achieved revenues of $347.6 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.12% and up from $275.9 million year-over-year [2] - Kratos has consistently outperformed consensus EPS estimates over the last four quarters, with a total of four earnings surprises [2] Financial Performance - The earnings surprise for the previous quarter was +22.22%, with actual earnings of $0.11 per share compared to an expected $0.09 [1] - The current consensus EPS estimate for the upcoming quarter is $0.16, with projected revenues of $336.02 million, and for the current fiscal year, the EPS estimate is $0.51 on revenues of $1.31 billion [7] Stock Performance - Kratos shares have increased approximately 245.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of continued outperformance in the near future [6] Industry Context - The Aerospace - Defense Equipment industry, to which Kratos belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]