Thursday, May 06, 2021

Kratos Defense & Security (KTOS)
Momentum Continues to Build, Raising Rating

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.

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

1Q21 Results. Kratos 1Q21 results exceeded consensus expectations. Revenues came in at $194.2 million, adjusted EPS was $0.06, and adjusted EBITDA for the quarter was $18.1 million. We had forecast revenue of $190 million, adjusted EPS of $0.04, and $15.5 million of adjusted EBITDA. Consensus was at $190 million of revenue and adjusted EPS of $0.05.


Strong Unmanned Performance.  Unmanned Systems revenue jumped 33.1% to $55.9 million, primarily reflecting increases in target drone programs. Government Solutions revenue rose 9% to $138.3 million in the quarter, additional revenue from the ACS acquisition was partially offset by a reduction in training program revenue …

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.