Aerospace and defense company Kratos (NASDAQ:KTOS) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Kratos missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $283.1 million, up 3.4% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Kratos a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kratos’s revenue to grow 5% year on year to $291.2 million, slowing from the 19.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kratos has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Kratos’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 1.5%, and Lockheed Martin reported revenues up 4.5%, topping estimates by 1.1%. CACI traded up 7.9% following the results while Lockheed Martin was also up 1.1%.
Read our full analysis of CACI’s results here and Lockheed Martin’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 12.3% on average over the last month. Kratos is up 27.1% during the same time and is heading into earnings with an average analyst price target of $34.82 (compared to the current share price of $35.88).
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