Shares of Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) have declined 8.1% to $12.87 since the company released its first-quarter 2022 results on May 6.
Kratos Defense reported first-quarter 2022 adjusted earnings of 4 cents per share, which beat the Zacks Consensus Estimate of a penny by a whopping 300%. However, the bottom line declined by 33.3% from the 6 cents per share reported in the prior-year quarter.
Kratos Defense reported a GAAP loss of 12 cents per share against the earnings of a penny reported in the prior-year quarter.
Total Revenues
Total revenues were $196.2 million, in line with the Zacks Consensus Estimate. Total revenues increased 1% from $194.2 million in the year-ago quarter.
Operational Update
Kratos Defense’s SG&A expenses were up 14.2%, while research and development expenses increased 15% year over year. Meanwhile, depreciation expenses rose 8.3%, whereas expenses regarding acquisitions and restructuring-related items increased a solid 200%.
KTOS reported a first-quarter 2022 operating loss of $1.2 million against the operating income of $4.9 million reported in the year-ago quarter.
Kratos Defense’s book-to-bill ratio for the first quarter of 2022 was 1.0 to 1.0, with bookings of $198.2 million for the same period.
The total backlog for Kratos Defense at the end of the first quarter of 2022 was $982.1 million, up from $953.9 million at the end of the fourth quarter of 2021.
Segmental Performance
Unmanned Systems:Net revenues in the first quarter decreased by 5.9% year over year to $52.6 million.
Government Solutions:Net revenues in the first quarter increased 3.8% year over year to $143.6 million, mainly due to contributions from recently acquired Cosmic AES and CTT.
Financial Details
As of Mar 27, 2022, cash and cash equivalents were $254.4 million compared with $349.4 million as of Dec 26, 2021.
The long-term debt, including net of the current portion, totaled $295 million as of Mar 27, 2022, slightly down from $296.7 million as of Dec 26, 2021.
In the first quarter, the cash outflow from operating activities was $7.9 million compared to the cash inflow of $22.7 million in the prior-year period.
Guidance
For the second quarter of 2022, KTOS expects to generate revenues in the range of $205-$215 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $210.5 million, in line with the midpoint of the company’s projected range.
For 2022, the company continues to expect revenues in the range of $880-$920 million. The Zacks Consensus Estimate for full-year revenues stands at $893.7 million, which lies near the lower end of the company’s projected range.
Zacks Rank
Kratos Defense currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. However, the bottom line declined by 1.8% year over year.
Lockheed Martin ended the first quarter of 2022 (on Mar 27, 2022) with $134.23 billion in the backlog compared with $135.36 billion at the end of the fourth quarter of 2021. LMT’s cash from operations at the end of the first quarter of 2022 amounted to $1.41 billion compared with $1.75 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Its sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%.
Raytheon Technologies had cash and cash equivalents of $6,040 million as of Mar 31, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects an adjusted EPS in the range of $4.60-$4.80.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2022 adjusted earnings of 22 cents per share, which exceeded the Zacks Consensus Estimate of 17 cents by 29.4%.
Hexcel’s net sales during the first quarter totaled $390.6 million, which beat the Zacks Consensus Estimate of $362 million by 7.9%. HXL currently expects to generate sales in the range of $1.50-$1.63 billion in 2022.
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Shares of Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) have declined 8.1% to $12.87 since the company released its first-quarter 2022 results on May 6.
Kratos Defense reported first-quarter 2022 adjusted earnings of 4 cents per share, which beat the Zacks Consensus Estimate of a penny by a whopping 300%. However, the bottom line declined by 33.3% from the 6 cents per share reported in the prior-year quarter.
Kratos Defense reported a GAAP loss of 12 cents per share against the earnings of a penny reported in the prior-year quarter.
Total Revenues
Total revenues were $196.2 million, in line with the Zacks Consensus Estimate. Total revenues increased 1% from $194.2 million in the year-ago quarter.
Operational Update
Kratos Defense’s SG&A expenses were up 14.2%, while research and development expenses increased 15% year over year. Meanwhile, depreciation expenses rose 8.3%, whereas expenses regarding acquisitions and restructuring-related items increased a solid 200%.
KTOS reported a first-quarter 2022 operating loss of $1.2 million against the operating income of $4.9 million reported in the year-ago quarter.
Kratos Defense’s book-to-bill ratio for the first quarter of 2022 was 1.0 to 1.0, with bookings of $198.2 million for the same period.
The total backlog for Kratos Defense at the end of the first quarter of 2022 was $982.1 million, up from $953.9 million at the end of the fourth quarter of 2021.
Segmental Performance
Unmanned Systems:Net revenues in the first quarter decreased by 5.9% year over year to $52.6 million.
Government Solutions:Net revenues in the first quarter increased 3.8% year over year to $143.6 million, mainly due to contributions from recently acquired Cosmic AES and CTT.
Financial Details
As of Mar 27, 2022, cash and cash equivalents were $254.4 million compared with $349.4 million as of Dec 26, 2021.
The long-term debt, including net of the current portion, totaled $295 million as of Mar 27, 2022, slightly down from $296.7 million as of Dec 26, 2021.
In the first quarter, the cash outflow from operating activities was $7.9 million compared to the cash inflow of $22.7 million in the prior-year period.
Guidance
For the second quarter of 2022, KTOS expects to generate revenues in the range of $205-$215 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $210.5 million, in line with the midpoint of the company’s projected range.
For 2022, the company continues to expect revenues in the range of $880-$920 million. The Zacks Consensus Estimate for full-year revenues stands at $893.7 million, which lies near the lower end of the company’s projected range.
Zacks Rank
Kratos Defense currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. However, the bottom line declined by 1.8% year over year.
Lockheed Martin ended the first quarter of 2022 (on Mar 27, 2022) with $134.23 billion in the backlog compared with $135.36 billion at the end of the fourth quarter of 2021. LMT’s cash from operations at the end of the first quarter of 2022 amounted to $1.41 billion compared with $1.75 billion a year ago.
Raytheon Technologies’ (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Its sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%.
Raytheon Technologies had cash and cash equivalents of $6,040 million as of Mar 31, 2022 compared with $7,832 million as of Dec 31, 2021. RTX projects an adjusted EPS in the range of $4.60-$4.80.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2022 adjusted earnings of 22 cents per share, which exceeded the Zacks Consensus Estimate of 17 cents by 29.4%.
Hexcel’s net sales during the first quarter totaled $390.6 million, which beat the Zacks Consensus Estimate of $362 million by 7.9%. HXL currently expects to generate sales in the range of $1.50-$1.63 billion in 2022.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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