Wednesday, August 5, 2020
Kratos Defense & Security (KTOS)
Tops 2Q Estimates; Future Remains Very Bright
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.
2Q20 Results. Revenue of $170.4 million and adjusted EPS of $0.08 topped consensus estimates of $165.2 million and $0.06, respectively, and our projection of $165 million and $0.03. The $170.4 million of revenue was just above management’s $170 million high end guidance while adjusted EBITDA of $15.3 million was near the $16 million high end guidance. Revenue was flat sequentially even though the majority of the first quarter was completed before COVID-19 hit.
Segments. Unmanned Systems revenues were flat year-over-year at $42 million although Adjusted EDITDA fell modestly to $3.0 million due to an increase in the mix of lower margin development programs. Government Solutions revenues fell to $128.4 million from $145.4 million and adjusted EBITDA dropped to …
Click to get the full report.
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.