Friday, March 1, 2019

Kratos Defense & Security Solutions, Inc. (KTOS)

Drones, drones and more drones to drive 2019; acquisition announced.

Kratos Defense &
Security Solutions, Inc. provides engineering, information technology (IT)
services, and warfighter solutions primarily in the United States. It operates
in two segments, Kratos Government Solutions (KGS) and Public Safety and
Security (PSS).

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

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

• Results for 2019 are expected to start off slow
  but then build throughout the year. The first quarter will be impacted by the
  partial government shutdown which delayed certain domestic and Foreign Military
  Sales contract awards and export license approvals required for international
  sales. FTT will add roughly one month to sales for the quarter. We are
  projecting the quarter to be similar to the first quarter of 2018, with revenue
  of $150 million, adjusted EBITDA of $11.5 million, and EPS of $0.01.
• We believe the pace of business will pick up
  throughout the year, especially on the drone side of the company. We see
  organic growth north of 10% with FTT contributing $45 million for the year. We
  are projecting 2019 revenue of $725 million, adjusted EBITDA of $73.6 million,
  and EPS of $0.21 per share. We would note, there is potential upside toour
  numbers as we have not included any potential UAS tactical revenue in our
  forecasts, nor have we included and potential upside from hypersonic and
  ballistic missile opportun…
  
  
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