Wednesday, February 23, 2022

Kratos Defense & Security (KTOS)
4Q21 Results Above Consensus

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q21 Results. Revenue of $211.6 million, up 2.5% y-o-y, and came in at the mid-point of the $205-$215 million guidance. Revenue increases in most business lines offset the decline in the Training business. Organic revenue growth was 7.7%, excluding the Training business. Adjusted EBITDA came in at $23.4 million versus $22.3 million a year ago. GAAP EPS loss was $0.02, adjusted EPS was $0.11. We had forecast revenue of $210 million, adjusted EBITDA of $21 million, $0.01 GAAP EPS, and adjusted EPS of $0.08.


Unmanned, Space, Satellite, Cyber Key Drivers.  Fourth quarter Unmanned Systems revenue jumped 9.9% to $54.4 million while the Space, Satellite and Cyber business experienced an organic 9.0% increase in revenue to $78.4 million. For the full 2021 year, Unmanned Systems revenue jumped 24% and the Space, Satellite and Cyber business saw its revenue rise by 19% in 2021 …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.