Monday, May 09, 2022
Kratos Defense & Security (KTOS)
A CR Impacted Quarter, but Future is Brighter
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.
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.
1Q22 Results. Revenue of $196.2 million, up 1.0% y-o-y, and came in at the mid-point of the $190-$200 million guidance. Revenue from acquisitions offset CR related impacts and the decline in the Training business. Adjusted EBITDA came in at $13.8 million, above guidance, versus $18.1 million a year ago. GAAP EPS loss was $0.12, adjusted EPS net income was $0.04.
Brighter Days? With the Continuing Resolution behind us, it appears there is a high potential for new awards. On the call, CEO DeMarco stated “We have now received or have been informed that we will receive several large new contracts in our unmanned systems and our satellite business, including our new software based OpenSpace products.”…
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.