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Tuesday, February 25, 2020
Kratos Defense & Security (KTOS)
Underwhelming 4Q; Is the Future Brighter?
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.
Underwhelming 4Q19. Kratos reported mixed 4Q19 results. Revenue came in at $185.1 million, below the $197 million consensus estimate, while adjusted EPS totaled $0.09, below the consensus $0.10 estimate. Full year revenue of $717.5 million was below the low-end of management's $720-$740 million guidance, although 2019 adjusted EBITDA of $77.3 million was above the $71-$77 million guided range. Full year adjusted EPS totaled $0.34, up 41.7% from $0.24 in 2018.
Unmanned Still The Star. Unmanned Systems saw 2019 revenue jump 21.4% to $161.4 million. We continue to see positive momentum here, although timing of production awards, and thus significant revenue growth, is uncertain. We continue to believe Kratos has developed a valuable asset in...
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.