We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kratos' (KTOS) Q2 Earnings & Revenues Top Estimates, Down Y/Y
Read MoreHide Full Article
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2020 earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of 5 cents by 60%. The bottom line, however, declined 27.2% from the prior-year quarter’s earnings of 11 cents per share.
Barring one-time adjustments, the company reported a GAAP loss of a penny per share in the second quarter of 2020.
Total Revenues
Total revenues amounted to $170.4 million, surpassing the Zacks Consensus Estimate of $167 million by 2%. Revenues although declined 9.3% from $187.9 million reported in the year-ago quarter. The year-over-year downside was led by lower product sales and service revenues.
Operational Update
Kratos’ operating expenses amounted to $39.8 million in the quarter compared with the prior-year quarter’s $35.5 million. Selling, general and administrative expenses were up 8.6%, while research and development expenses rose 33.3%.
The company reported second-quarter 2020 operating income of $2.9 million compared with the operating income of $9 million reported in the second quarter of 2019.
Kratos reported second-quarter 2020 bookings of $163.7 million and a book-to-bill ratio of 1.3 to 1.0, with a backlog of $683.4 million as of Jun 28, 2020.
Segmental Performance
Unmanned Systems: Net sales during the second quarter declined 1.2% year over year to $42 million.
Government Solutions: Net sales in the second quarter fell 11.7% year over year to $128.4 million.
Kratos Defense Security Solutions, Inc. Price, Consensus and EPS Surprise
As of Jun 28, 2020, cash and cash equivalents were $397.2 million compared with $172.6 million as of Dec 31, 2019.
Long-term debt, including net of current portion, totaled $295.9 million as of Jun 28, 2020, up from $295.1 million as of Dec 31, 2019.
At the end of first-half 2020, cash generated from operating activities summed $10.8 million compared with $20 million in the first half of 2019.
Q3 & 2020 Guidance
For the third quarter of 2020, Kratos expects revenues of $195-$205 million. The Zacks Consensus Estimate for sales is pegged at $200.4 million, which lies above the midpoint of the company’s projected view.
For 2020, the company increased its revenue guidance from $720-$760 million to $740-$780 million, primarily reflecting the expected contribution of the ASC Signal acquisition for the second half of 2020. The Zacks Consensus Estimate for full-year sales is pegged at $750.8 million, which lies below the midpoint of the company’s projected range.
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Curtiss-Wright Corporation (CW - Free Report) , a Zacks Rank #3 company, reported second-quarter 2020 adjusted earnings of $1.31 per share, which surpassed the Zacks Consensus Estimate of $1.29 by 1.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Kratos' (KTOS) Q2 Earnings & Revenues Top Estimates, Down Y/Y
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2020 earnings of 8 cents per share, which surpassed the Zacks Consensus Estimate of 5 cents by 60%. The bottom line, however, declined 27.2% from the prior-year quarter’s earnings of 11 cents per share.
Barring one-time adjustments, the company reported a GAAP loss of a penny per share in the second quarter of 2020.
Total Revenues
Total revenues amounted to $170.4 million, surpassing the Zacks Consensus Estimate of $167 million by 2%. Revenues although declined 9.3% from $187.9 million reported in the year-ago quarter. The year-over-year downside was led by lower product sales and service revenues.
Operational Update
Kratos’ operating expenses amounted to $39.8 million in the quarter compared with the prior-year quarter’s $35.5 million. Selling, general and administrative expenses were up 8.6%, while research and development expenses rose 33.3%.
The company reported second-quarter 2020 operating income of $2.9 million compared with the operating income of $9 million reported in the second quarter of 2019.
Kratos reported second-quarter 2020 bookings of $163.7 million and a book-to-bill ratio of 1.3 to 1.0, with a backlog of $683.4 million as of Jun 28, 2020.
Segmental Performance
Unmanned Systems: Net sales during the second quarter declined 1.2% year over year to $42 million.
Government Solutions: Net sales in the second quarter fell 11.7% year over year to $128.4 million.
Kratos Defense Security Solutions, Inc. Price, Consensus and EPS Surprise
Kratos Defense Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense Security Solutions, Inc. Quote
Financial Details
As of Jun 28, 2020, cash and cash equivalents were $397.2 million compared with $172.6 million as of Dec 31, 2019.
Long-term debt, including net of current portion, totaled $295.9 million as of Jun 28, 2020, up from $295.1 million as of Dec 31, 2019.
At the end of first-half 2020, cash generated from operating activities summed $10.8 million compared with $20 million in the first half of 2019.
Q3 & 2020 Guidance
For the third quarter of 2020, Kratos expects revenues of $195-$205 million. The Zacks Consensus Estimate for sales is pegged at $200.4 million, which lies above the midpoint of the company’s projected view.
For 2020, the company increased its revenue guidance from $720-$760 million to $740-$780 million, primarily reflecting the expected contribution of the ASC Signal acquisition for the second half of 2020. The Zacks Consensus Estimate for full-year sales is pegged at $750.8 million, which lies below the midpoint of the company’s projected range.
Zacks Rank
Kratos currently carries a Zacks Rank #4 (Sell).
Recent Defense Releases
Teledyne Technologies (TDY - Free Report) , a Zacks Rank #2 (Buy) company, reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #3 (Hold) company, reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Curtiss-Wright Corporation (CW - Free Report) , a Zacks Rank #3 company, reported second-quarter 2020 adjusted earnings of $1.31 per share, which surpassed the Zacks Consensus Estimate of $1.29 by 1.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>