Friday, October 30, 2020
Kratos Defense & Security (KTOS)
Momentum Continues to Build; Exceeds 3Q Consensus Estimates
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.
3Q20 Results. Revenue of $202 million and adjusted EPS of $0.14 topped consensus estimates of $199.7 million and $0.09, respectively. We had projected $205 million and $0.07, respectively. In the third quarter last year, KTOS reported revenue of $184.1 million and adjusted EPS of $0.13. Adjusted EBITDA came in at $24.6 million, up 20.6% y-o-y. Revenues were in the middle of management’s guidance range while adjusted EBITDA exceeded the $17-$20 million guide.
Program Momentum. As we have outlined in previous reports, Kratos continues to pick up momentum among a number of programs. Key highlights in the quarter include going to full rate production on the BQM-177A Subsonic Aerial Target for the U.S. Navy, securing a contract to support the U.S. Air Force’s Ground Based Strategic Deterrent (GBSD) program as part of the team led by Northrop Grumman, and …
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.