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Research – Kratos Defense (KTOS) – Acquisition announced

Aerospace and Defense
0 min read

Friday, March 1, 2019

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).

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating.  

  • 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



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*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.
 

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