Friday, February 26, 2021

Kratos Defense & Security (KTOS)
4Q20 Results In-line

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.

Market Perform. KTOS shares have exceeded our PT but we view 2021 as a re-set year, with many programs having been pushed to the right due to COVID. We still believe in the long-term prospects of Kratos and believe the Company to be well positioned to capitalize on new and emerging trends in defense.


4Q20 Results.  Revenue rose 11.5% to $206.4 million. Adjusted EPS was $0.08 compared to $0.09 last year. Adjusted EBITDA for the quarter totaled $22.3 million, up 10.4% from $20.2 million in 4Q19. We had projected revenue of $210 million, adjusted EPS of $0.09, and Adjusted EBITDA of $20 million. Consensus was $217 million and $0.10. Unmanned Systems revenues grew 29.2% to $49.5 million, reflecting …

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.