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Kratos Defense & Security Solutions, Inc. (KTOS)
Drones, drones and more drones to drive 2019; acquisition announced.
Kratos Defense & Security Solutions, Inc. provides engineering, information technology (IT) services, and warfighter solutions primarily in the United States. It operates in two segments, Kratos Government Solutions (KGS) and Public Safety and Security (PSS).
- Results for 2019 are expected to start off slow but then build throughout the year. The first quarter will be impacted by the partial government shutdown which delayed certain domestic and Foreign Military Sales contract awards and export license approvals required for international sales. FTT will add roughly one month to sales for the quarter. We are projecting the quarter to be similar to the first quarter of 2018, with revenue of $150 million, adjusted EBITDA of $11.5 million, and EPS of $0.01.
- We believe the pace of business will pick up throughout the year, especially on the drone side of the company. We see organic growth north of 10% with FTT contributing $45 million for the year. We are projecting 2019 revenue of $725 million, adjusted EBITDA of $73.6 million, and EPS of $0.21 per share. We would note, there is potential upside toour numbers as we have not included any potential UAS tactical revenue in our forecasts, nor have we included and potential upside from hypersonic and ballistic missile opportun
*Analyst certification and important disclosures included in 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.