Core Viewpoint - Kratos Defense & Security Solutions, Inc. (KTOS) is expected to report strong first-quarter 2025 results, driven by solid revenue growth across its business segments despite challenges from higher costs [1][7]. Group 1: Revenue Performance - The Unmanned Systems business segment is anticipated to show solid revenue growth due to increased domestic and international target drone production, with quarterly revenues estimated at $65.6 million, reflecting a 10.4% increase year-over-year [2]. - The Government Solutions business segment is expected to benefit from revenue growth in C5ISR, microwave electronics, hypersonic and ballistic missile target businesses, and turbine technologies [3]. - However, the Space and Satellite business within the Government segment is projected to experience lower revenues due to OEM delays in software-defined satellite manufacturing, negatively impacting the deployment of commercial satellite ground equipment [4]. - The overall revenue estimate for the Government segment is $227 million, indicating a 4.2% rise from the previous year [5]. - The total revenue estimate for KTOS in the first quarter is $292.2 million, representing a 5.4% increase from the year-ago quarter [7]. Group 2: Earnings Expectations - The consensus estimate for KTOS' first-quarter earnings is nine cents per share, which indicates an 18.2% decline from the prior-year figure [8]. - Despite solid revenue projections, higher bid and proposal costs, along with increased subcontractor and material costs on certain contracts, are expected to adversely affect overall earnings [7]. Group 3: Market Position and Predictions - The Zacks model indicates that KTOS does not conclusively predict an earnings beat this time, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [9][10].