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.
Shares of Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) grew 6.2% to reach $26.75 on May 5, reflecting investors’ optimism following its first-quarter results.
The company reported first-quarter 2021 adjusted earnings of 6 cents per share, which exceeded the Zacks Consensus Estimate of 5 cents by 20%.
The bottom-line figure, however, declined 33.3% from 9 cents reported in the prior-year quarter.
Total Revenues
Total revenues amounted to $194.2 million, surpassing the Zacks Consensus Estimate of $190 million by 2.5% and increasing 15% from $168.9 million reported in the year-ago quarter. The year-over-year upside was led by organic growth in Kratos’ Unmanned Systems, Space and Satellite, C5ISR, Microwave Products, Rocket Support Systems and Turbine Technology businesses.
Operational Update
Kratos’ operating expenses amounted to $48.1 million in the quarter compared with $41.1 million in the prior-year quarter. Selling, general and administrative expenses were up 12%.
Kratos reported first-quarter 2021 operating income of $4.9 million, reflecting an increase of 4.2% from first-quarter 2020.
The company’s book-to-bill ratio for the first quarter of 2021 was 0.7 to 1.0 and 1.2 to 1.0 for the twelve months ended Mar 28, 2021, with bookings of $247.4 million for the same period.
Total backlog for Kratos at the end of the first quarter of 2021 was $222.4 million, down from $237.9 million at the end of the fourth quarter of 2020 and up from $174.4 million at the end of the first quarter of 2020.
Segmental Performance
Unmanned Systems: Net revenues during the first quarter increased 33.1% year over year to $55.9 million.
Government Solutions: Net revenues in the first quarter rose 9% year over year to $138.3 million.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
As of Mar 28, 2021, cash and cash equivalents were $383.6 million compared with $380.8 million as of Dec 27, 2020.
Long-term debt, including net of current portion, totaled $300.3 million as of Mar 28, 2021, up slightly from $301 million as of Dec 27, 2020.
As of Mar 28, 2021, cash generated from operating activities was $22.7 million compared with $4 million in the prior-year quarter.
2021 Guidance
For second-quarter 2021, Kratos expects to generate revenues of $195-$205 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $199.7 million, which lies near the midpoint of the company’s projected range.
For 2021, the company expects revenues of $810-$850 million. The Zacks Consensus Estimate for full-year revenues is pegged at $831.8 million, which lies above the midpoint of the company’s projected range.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.
Raytheon Technologies Corporation’s (RTX - Free Report) first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Kratos' (KTOS) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Shares of Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) grew 6.2% to reach $26.75 on May 5, reflecting investors’ optimism following its first-quarter results.
The company reported first-quarter 2021 adjusted earnings of 6 cents per share, which exceeded the Zacks Consensus Estimate of 5 cents by 20%.
The bottom-line figure, however, declined 33.3% from 9 cents reported in the prior-year quarter.
Total Revenues
Total revenues amounted to $194.2 million, surpassing the Zacks Consensus Estimate of $190 million by 2.5% and increasing 15% from $168.9 million reported in the year-ago quarter. The year-over-year upside was led by organic growth in Kratos’ Unmanned Systems, Space and Satellite, C5ISR, Microwave Products, Rocket Support Systems and Turbine Technology businesses.
Operational Update
Kratos’ operating expenses amounted to $48.1 million in the quarter compared with $41.1 million in the prior-year quarter. Selling, general and administrative expenses were up 12%.
Kratos reported first-quarter 2021 operating income of $4.9 million, reflecting an increase of 4.2% from first-quarter 2020.
The company’s book-to-bill ratio for the first quarter of 2021 was 0.7 to 1.0 and 1.2 to 1.0 for the twelve months ended Mar 28, 2021, with bookings of $247.4 million for the same period.
Total backlog for Kratos at the end of the first quarter of 2021 was $222.4 million, down from $237.9 million at the end of the fourth quarter of 2020 and up from $174.4 million at the end of the first quarter of 2020.
Segmental Performance
Unmanned Systems: Net revenues during the first quarter increased 33.1% year over year to $55.9 million.
Government Solutions: Net revenues in the first quarter rose 9% year over year to $138.3 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 Mar 28, 2021, cash and cash equivalents were $383.6 million compared with $380.8 million as of Dec 27, 2020.
Long-term debt, including net of current portion, totaled $300.3 million as of Mar 28, 2021, up slightly from $301 million as of Dec 27, 2020.
As of Mar 28, 2021, cash generated from operating activities was $22.7 million compared with $4 million in the prior-year quarter.
2021 Guidance
For second-quarter 2021, Kratos expects to generate revenues of $195-$205 million. The Zacks Consensus Estimate for second-quarter revenues is pegged at $199.7 million, which lies near the midpoint of the company’s projected range.
For 2021, the company expects revenues of $810-$850 million. The Zacks Consensus Estimate for full-year revenues is pegged at $831.8 million, which lies above the midpoint of the company’s projected range.
Zacks Rank
Kratos currently carries 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 Corp. (LMT - Free Report) reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents.
Raytheon Technologies Corporation’s (RTX - Free Report) first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>