Back to top

Image: Bigstock

Kratos' (KTOS) Q4 Earnings Miss Estimates, Revenues Rise Y/Y

Read MoreHide Full Article

Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported fourth-quarter 2019 adjusted earnings of 9 cents per share, which missed the Zacks Consensus Estimate of 11 cents by 18.2%. The bottom line was flat year over year.

Including one-time adjustments, the company reported GAAP earnings of 3 cents per share, down 40% year over year.

For 2019, the company posted adjusted earnings of 34 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line was up 41.7% from the prior year.

Total Revenues

Total revenues amounted to $185.1 million, missing the Zacks Consensus Estimate of $198 million by 6.5% but increasing 12.6% from $164.4 million reported in the year-ago quarter.

For 2019, the company recorded revenues worth $717.5 million, up 16.1% from last year’s number. The full-year top line missed the Zacks Consensus Estimate of $730.3 million by 1.8%.

Operational Update

Kratos’ operating expenses amounted to $39.1 million in the quarter compared with $34.7 million in the prior-year quarter. Selling, general and administrative expenses were up 0.04%, while research and development expenses rose 25%.

Kratos reported fourth-quarter 2019 operating income of $9.3 million, reflecting a decrease of 13.9% from the fourth quarter of 2018.

Kratos reported fourth-quarter 2019 bookings of $177.5 million and a book-to-bill ratio of 1.0 to 1.0. Backlog as of Dec 29, 2019 was $601.2 million compared with $608.7 million as of Sep 29, 2019.

Segmental Performance

Unmanned Systems: Net revenues during the fourth quarter increased 5.8% year over year to $38.3 million.

Government Solutions: Net revenues in the fourth quarter increased 14.5% year over year to $146.8 million.

Financial Details

As of Dec 29, 2019, cash and cash equivalents were $172.6 million compared with $182.7 million as of Dec 31, 2018.

Long-term debt, including net of current portion, totaled $295.1 million as of Dec 29, 2019, up slightly from $294.2 million as of Dec 31, 2018.

At the end of 2019, cash generated from operating activities was $28.9 million compared with $18.1 million in the prior year.

2020 Guidance

For first quarter of 2020, Kratos expects revenues in the range of $160-170 million. The Zacks Consensus Estimate for sales is pegged at $184.5 million, which lies above the company’s projected view.

For 2020, the company expects revenues in the range of $740-780 million. The Zacks Consensus Estimate for full-year sales is pegged at $824.4 million, which lies above 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

Huntington Ingalls Industries (HII - Free Report) fourth-quarter 2019 earnings of $4.36 per share surpassed the Zacks Consensus Estimate of $4.24 by 2.83%. However, the reported figure declined 11.7% from $4.94 reported a year ago.

Teledyne Technologies (TDY - Free Report) reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came above the guided range of $2.71-$2.76.

Lockheed Martin (LMT - Free Report) reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from $4.39 in the year-ago quarter.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

 

Published in