We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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) increased 5.8% to reach $19.84 on May 8, reflecting investors’ optimism following the company’s latest result release.
KTOS reported first-quarter 2024 adjusted earnings of 11 cents per share, up 83.3% from 6 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of earnings of 5 cents per share by 120%.
Kratos Defense reported GAAP earnings of a penny per share against a loss of 5 cents in the first quarter of 2023.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
Total revenues were $277.2 million, which surpassed the Zacks Consensus Estimate of $251 million by 10.5%. The figure also increased 19.6% from $231.8 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the Kratos Government Solutions and Unmanned Systems segments’ revenue growth.
Operational Update
Kratos Defense’s selling, general and administrative expenses increased 12.5% year over year while research and development expenses were down 5.9%. Depreciation expenses increased 35.7% while expenses related to the amortization of intangible assets surged 31.3%.
The company reported operating income of $7 million, which increased massively from the year-ago quarter’s $0.5 million.
It posted a consolidated book-to-bill ratio of 1.1-1.0, with bookings worth $381.1 million.
The total backlog at the end of the first quarter was $1.27 billion compared with $1.24 billion at the end of the fourth quarter 2023.
Segmental Performance
Unmanned Systems: Net revenues improved 23.8% year over year to $59.4 million.
Kratos Government Solutions: Net revenues increased 47.9% to $217.8 million on a year-over-year basis.
Financial Details
As of Mar 31, 2024, cash and cash equivalents totaled $338.9 million, up from $72.8 million as of Dec 31, 2023. The long-term debt amounted to $179.4 million as of Mar 31, 2024, down from $219.3 million recorded as of Dec 31, 2023.
During the first quarter, cash flow from operating activities totaled $0.7 million against cash outflow of $25.7 million in the previous year.
Guidance
Kratos Defense has provided its outlook for the second quarter and reiterated its 2024 guidance. For the second quarter, it expects revenues in the $265-$280 million range. The Zacks Consensus Estimate for revenues is pegged at $269.8 million, lower than the midpoint of the company’s guided range.
For 2024, Kratos Defense still expects revenues in the range of $1.13-$1.15 billion. The consensus estimate for revenues is pegged at $1.13 billion, which lies almost in line with the lower end of the company’s projected range.
General Dynamics Corporation (GD - Free Report) reported first-quarter earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from earnings of $2.64 per share recorded in the year-ago quarter.
GD’s revenues of $10,731 million beat the consensus estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted EPS of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s net sales were $19,305 million, which surpassed the consensus estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter adjusted earnings of $7.99 per share, which beat the Zacks Consensus Estimate of $7.37 by 8.4%. The bottom line also improved 33.6% from the prior-year quarter’s reported figure of $5.98.
Net sales amounted to $1.92 billion, up 20.5% from $1.59 billion registered in the prior-year period. The reported figure also beat the consensus estimate of $1.89 billion by 1.8%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Kratos Defense (KTOS) Q1 Earnings Top, Revenues Rise Y/Y
Shares of Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) increased 5.8% to reach $19.84 on May 8, reflecting investors’ optimism following the company’s latest result release.
KTOS reported first-quarter 2024 adjusted earnings of 11 cents per share, up 83.3% from 6 cents reported in the prior-year quarter. The figure also surpassed the Zacks Consensus Estimate of earnings of 5 cents per share by 120%.
Kratos Defense reported GAAP earnings of a penny per share against a loss of 5 cents in the first quarter of 2023.
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
Total Revenues
Total revenues were $277.2 million, which surpassed the Zacks Consensus Estimate of $251 million by 10.5%. The figure also increased 19.6% from $231.8 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the Kratos Government Solutions and Unmanned Systems segments’ revenue growth.
Operational Update
Kratos Defense’s selling, general and administrative expenses increased 12.5% year over year while research and development expenses were down 5.9%. Depreciation expenses increased 35.7% while expenses related to the amortization of intangible assets surged 31.3%.
The company reported operating income of $7 million, which increased massively from the year-ago quarter’s $0.5 million.
It posted a consolidated book-to-bill ratio of 1.1-1.0, with bookings worth $381.1 million.
The total backlog at the end of the first quarter was $1.27 billion compared with $1.24 billion at the end of the fourth quarter 2023.
Segmental Performance
Unmanned Systems: Net revenues improved 23.8% year over year to $59.4 million.
Kratos Government Solutions: Net revenues increased 47.9% to $217.8 million on a year-over-year basis.
Financial Details
As of Mar 31, 2024, cash and cash equivalents totaled $338.9 million, up from $72.8 million as of Dec 31, 2023. The long-term debt amounted to $179.4 million as of Mar 31, 2024, down from $219.3 million recorded as of Dec 31, 2023.
During the first quarter, cash flow from operating activities totaled $0.7 million against cash outflow of $25.7 million in the previous year.
Guidance
Kratos Defense has provided its outlook for the second quarter and reiterated its 2024 guidance. For the second quarter, it expects revenues in the $265-$280 million range. The Zacks Consensus Estimate for revenues is pegged at $269.8 million, lower than the midpoint of the company’s guided range.
For 2024, Kratos Defense still expects revenues in the range of $1.13-$1.15 billion. The consensus estimate for revenues is pegged at $1.13 billion, which lies almost in line with 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
General Dynamics Corporation (GD - Free Report) reported first-quarter earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from earnings of $2.64 per share recorded in the year-ago quarter.
GD’s revenues of $10,731 million beat the consensus estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted EPS of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s net sales were $19,305 million, which surpassed the consensus estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
TransDigm Group Incorporated (TDG - Free Report) reported second-quarter adjusted earnings of $7.99 per share, which beat the Zacks Consensus Estimate of $7.37 by 8.4%. The bottom line also improved 33.6% from the prior-year quarter’s reported figure of $5.98.
Net sales amounted to $1.92 billion, up 20.5% from $1.59 billion registered in the prior-year period. The reported figure also beat the consensus estimate of $1.89 billion by 1.8%.