Latest news with #KTOS
Yahoo
3 days ago
- Business
- Yahoo
Kratos (KTOS) Jumps to New High on Higher Growth Outlook, Whopping Price Targets
We recently published . Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) is one of the best-performing stocks on Friday. Kratos Defense rallied to a new all-time high on Friday as investors cheered its higher growth outlook for full-year 2025, while taking heart from whopping price targets from investment firms. At intra-day trading, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) touched a new 52-week high of $66.13, before a slight profit-taking pulled its share price lower to end the day just up by 8.12 percent at $63.88. Copyright: scanrail / 123RF Stock Photo In its updated report, the company raised its revenue growth forecast for the full year to $1.29 billion to $1.31 billion, from the $1.26 billion to $1.285 billion previously, as it expects to benefit from the US government's aggressive defense and security programs. In its market report, Raymond James raised its price target for the company to $80 from $40 previously, while maintaining a 'strong buy' recommendation' on expectations that it would grow its revenues to $2 billion over the next two years, reflecting an annual growth of more than 20 percent over the next five years, from only 10 percent at present. In a separate report, Royal Bank of Canada upgraded its price target for the company to $65 from $50 previously, while reaffirming an 'outperform' rating. In the second quarter of the year, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) dropped its net income by 63 percent to $2.9 million from $7.9 million in the same period last year. Total revenues jumped by 17 percent to $351.5 million from $300.1 million year-on-year. While we acknowledge the potential of KTOS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
4 days ago
- Business
- Yahoo
Why Kratos Defense Stock Popped Today
Key Points Kratos Defense beat on both sales and earnings last night. GAAP profits were $0.02 per share, and Kratos expects to remain GAAP profitable through year end. Free cash flow, however, is negative, and sales growth may be slowing. 10 stocks we like better than Kratos Defense & Security Solutions › Mid-cap defense stock and military drone specialist Kratos Defense & Security Solutions (NASDAQ: KTOS) soared 9.4% through 11:50 a.m. ET Friday after the company reported a substantial earnings beat last night. Heading into the report, analysts forecast Kratos would earn $0.09 per share on sales of $305.8 million, but Kratos reported an $0.11-per-share profit and sales of $351.5 million. Kratos Defense Q2 earnings Kratos' sales grew 17% in Q2, 15% of which was organic growth, a tremendous accomplishment -- although management said its book-to-bill ratio in Q2 was only 0.7, so business could be slowing down. Not all the news was good, however. On profits, it's worth noting that the $0.11 profit Kratos earned was a non-GAAP (adjusted) number, and that actual earnings as calculated according to generally accepted accounting principles (GAAP) amounted to only $0.02 per share -- down 60% year over year. Free cash flow in the quarter also ran negative, with Kratos burning through $31.1 million in Q2. Is Kratos stock a buy? As implied by the weak book-to-bill ratio, Kratos guided below analyst estimates for Q3 revenue, just $315 million to $325 million. The Q2 revenue beat, however, more than makes up for that shortfall, and guidance for the full year is slightly ahead of Wall Street forecasts, with Kratos likely to generate sales of roughly $1.3 billion through the end of this year. The company also expects to be profitable, at least on an operating basis, but also to continue burning cash through year end. Indeed, analysts who follow the company don't expect to see positive free cash flow before 2027. Between the negative free cash flow and the lofty valuation -- more than 400 times this year's estimated earnings -- Kratos stock remains a sell for me. Do the experts think Kratos Defense & Security Solutions is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Kratos Defense & Security Solutions make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,047% vs. just 181% for the S&P — that is beating the market by 865.68%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Kratos Defense Stock Popped Today was originally published by The Motley Fool
Yahoo
5 days ago
- Business
- Yahoo
Kratos (NASDAQ:KTOS) Reports Strong Q2, Full-Year Outlook Slightly Exceeds Expectations
Aerospace and defense company Kratos (NASDAQ:KTOS) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 17.1% year on year to $351.5 million. Revenue guidance for the full year exceeded analysts' estimates, but next quarter's guidance of $320 million was less impressive, coming in 1.5% below expectations. Its non-GAAP profit of $0.11 per share was 17.7% above analysts' consensus estimates. Is now the time to buy Kratos? Find out in our full research report. Kratos (KTOS) Q2 CY2025 Highlights: Revenue: $351.5 million vs analyst estimates of $305.5 million (17.1% year-on-year growth, 15% beat) Adjusted EPS: $0.11 vs analyst estimates of $0.09 (17.7% beat) Adjusted EBITDA: $28.3 million vs analyst estimates of $23.7 million (8.1% margin, 19.4% beat) The company lifted its revenue guidance for the full year to $1.3 billion at the midpoint from $1.27 billion, a 2.2% increase EBITDA guidance for the full year is $117 million at the midpoint, in line with analyst expectations Operating Margin: 1.1%, down from 4.2% in the same quarter last year Free Cash Flow was -$32.2 million compared to -$15.4 million in the same quarter last year Organic Revenue rose 15.2% year on year (16.7% in the same quarter last year) Market Capitalization: $9.92 billion Eric DeMarco, Kratos' President and CEO, said, 'A generational recapitalization of strategic weapon systems is underway, with significant global funding being committed by the U.S. and its allies, including as represented by a planned U.S. 2026 National Security spend exceeding $1 trillion, NATO committing 5% of member GDP to defense, and Asian allies looking to do the same. The Global Defense and National Security Market is currently approximately $2.5 trillion, led by the United States 'peace through strength' posture and is expected to grow for the foreseeable future. Company Overview Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Kratos's sales grew at an impressive 11.4% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Kratos's annualized revenue growth of 12% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. We can better understand the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Kratos's organic revenue averaged 11.2% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Kratos reported year-on-year revenue growth of 17.1%, and its $351.5 million of revenue exceeded Wall Street's estimates by 15%. Company management is currently guiding for a 16% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 12.4% over the next 12 months, similar to its two-year rate. This projection is noteworthy and indicates the market is forecasting success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Kratos was profitable over the last five years but held back by its large cost base. Its average operating margin of 2.4% was weak for an industrials business. Analyzing the trend in its profitability, Kratos's operating margin decreased by 2.1 percentage points over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Kratos's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. In Q2, Kratos generated an operating margin profit margin of 1.1%, down 3.1 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Kratos's EPS grew at an unimpressive 5.7% compounded annual growth rate over the last five years, lower than its 11.4% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of Kratos's earnings can give us a better understanding of its performance. As we mentioned earlier, Kratos's operating margin declined by 2.1 percentage points over the last five years. Its share count also grew by 45.3%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Kratos, its two-year annual EPS growth of 23.1% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history. In Q2, Kratos reported adjusted EPS at $0.11, down from $0.14 in the same quarter last year. Despite falling year on year, this print easily cleared analysts' estimates. Over the next 12 months, Wall Street expects Kratos's full-year EPS of $0.47 to grow 24.3%. Key Takeaways from Kratos's Q2 Results We were impressed by how significantly Kratos blew past analysts' expectations across the board this quarter. We were also excited it raised its full-year revenue guidance. Overall, we think this was a solid quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 4.2% to $56.67 immediately after reporting. Big picture, is Kratos a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
30-07-2025
- Business
- Yahoo
Kratos Defense & Security Solutions Schedules Second Quarter 2025 Earnings Conference Call for Thursday, August 7th
SAN DIEGO, July 30, 2025 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a Technology Company in the Defense, National Security and Global Markets, announced today that it will publish financial results for the second quarter 2025 after the close of market on Thursday, August 7th. Management will discuss the Company's operations and financial results in a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern). The call will be available at Participants may register for the call using this Online Form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. For those who cannot access the live broadcast, a replay will be available on Kratos' website. About Kratos Defense & Security Solutions Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field solutions that address our customers' mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos' approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as an innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe that our probability of win (PWin) is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of PWin is greater or required investment is beyond Kratos' comfort level. Kratos' primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit Press Contact:Claire Investor Information:877-934-4687investor@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
Kratos Defense & Security Solutions, Inc (KTOS): A Bull Case Theory
We came across a bullish thesis on Kratos Defense & Security Solutions, Inc on Polymath Investor substack by Polymath. In this article, we will summarize the bulls' thesis on KTOS. Kratos Defense & Security Solutions, Inc's share was trading at $42.16 as of 18th June. KTOS's trailing and forward P/E were 324.31 and 79.37 respectively according to Yahoo Finance. A drone taking off from a commercial warehouse, representing the company's custom manufacturing capabilities. Kratos Defense & Security Solutions (KTOS) stands out as a rare publicly traded company offering direct exposure to the rapidly growing tactical drone and unmanned aerial vehicle (UAV) market. Its Unmanned Systems segment, in particular, is the primary reason investors are taking notice. Positioned in a high-priority niche for the Pentagon, Kratos is investing heavily in next-generation drone and space technologies, which represent critical capabilities for modern defense. These areas are seeing increasing government focus, suggesting strong long-term tailwinds. However, the aggressive reinvestment into these growth opportunities has kept consolidated profits relatively flat for now. The company's strategy reflects a long-term vision, with current spending aimed at capturing future defense budgets and technological leadership. Despite the promising outlook, Kratos is not without risks. The unpredictable nature of defense contract timing—where delays or cancellations can significantly impact performance—remains a key concern. Additionally, the company's reliance on equity issuance to fund growth introduces short-term dilution, which may deter some investors. Yet, for those who believe in the secular growth of tactical drones and trust in Kratos's strategic positioning, the company could emerge as a leader in an increasingly vital segment of defense technology. With few public peers offering this level of exposure to unmanned systems, Kratos presents a unique opportunity to gain early-stage access to a sector likely to see substantial expansion, driven by evolving military needs and increasing autonomy in combat systems. As such, the current period of heavy investment may eventually give way to meaningful returns, making Kratos a compelling long-term play. Previously we covered a bullish thesis on Kratos Defense & Security Solutions, Inc. (KTOS) by Kooky_Lime1793 in January 2025, which highlighted the company's $1.45 billion hypersonic test contract, growing prominence in autonomous military drones, and partnerships with RocketLab and Leidos. The company's stock price has appreciated approximately by 47% since our coverage. This is because the thesis played out with strong government backing and strategic execution. The thesis still stands as Kratos remains well-positioned in defense innovation. Polymath shares a similar outlook but emphasizes Kratos' long-term positioning in tactical drones despite current profit headwinds. KTOS isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of KTOS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
