Kratos (KTOS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Shares of Kratos Defense and Security Solutions Inc (NASDAQ:KTOS) are down 2.6% at $41.25 at last glance, after the company announced the sale of $500 million in stock.
Kratos (KTOS) reported earnings 30 days ago. What's next for the stock?
Many of these stocks have taken investors on roller-coaster rides and have sky-high price-to-earnings ratios.
Kratos offers unique growth potential in drones, hypersonics, and microelectronics, justifying its premium valuation versus peers. Revenue growth is strong, but margin expansion and operating income remain challenged due to ramp-up costs and investments. Despite near-term margin pressure and negative free cash flow, I see 18% upside and raise my price target to $41.53.
KTOS' first-quarter 2025 earnings and revenues beat expectations. The company's 2025 guidance remains unchanged.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS ) Q1 2025 Earnings Conference Call May 7, 2025 5:00 PM ET Company Participants Marie Mendoza - SVP & General Counsel Eric DeMarco - President & CEO Deanna Lund - EVP & CFO Conference Call Participants Peter Arment - Baird Mike Crawford - B. Riley Securities Ken Herbert - RBC Capital Markets Joe Gomes - NOBLE Capital Michael Ciarmoli - Truist Securities Andre Madrid - BTIG Peter Skibitski - Alembic Global Rustom Kanga - Citizens Greg Konrad - Jefferies Good day, and thank you for standing by.
The headline numbers for Kratos (KTOS) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Kratos (KTOS) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.11 per share a year ago.
KTOS' Q1 results are expected to reflect robust top-line performance from both of its business segments.
Besides Wall Street's top -and-bottom-line estimates for Kratos (KTOS), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Kratos Defense & Security's Q1 2025 earnings report is crucial amid geopolitical tensions and increased defense spending, with mixed analyst expectations on EPS and revenue. Key areas to watch include unmanned system growth, EBITDA margins, guidance updates, and contract awards, which are pivotal for investor confidence. The stock has shown significant post-earnings volatility; strong performance could lead to a stock surge, while shortfalls may trigger corrections.