Kratos Defense Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Kratos Defense & Security Solutions, Inc. KTOS reported fourth-quarter 2024 adjusted earnings of 13 cents per share, up 8.3% from 12 cents in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of nine cents per share by 44.4%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Kratos Defense reported GAAP earnings of three cents per share compared with two cents in the fourth quarter of 2023.The company reported 2024 adjusted earnings of 49 cents per share, which were higher than the year-ago figure of 42 cents. The full-year bottom line also surpassed the Zacks Consensus Estimate of 46 cents per share.KTOS’ Total RevenuesTotal revenues were $283.1 million, which missed the Zacks Consensus Estimate of $288 million by 1.8%. The figure, however, rose 3.4% from $273.8 million recorded in the year-ago quarter.The year-over-year improvement can be attributed to the Unmanned Systems and Kratos Government Solutions segments’ revenue growth.The company reported total revenues of $1.14 billion in 2024, which were higher than $1.04 billion in 2023. The full-year top line was in line with the Zacks Consensus Estimate.Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise Kratos Defense & Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense & Security Solutions, Inc. QuoteOperational Update of Kratos DefenseKratos Defense’s selling, general and administrative expenses increased 1.1% year over year. Research and development expenses rose 32.5%. Depreciation expenses surged 19% year over year.Expenses related to the amortization of intangible assets decreased 8.7% year over year.The company reported operating income of $3 million, which declined from the year-ago quarter’s $11.7 million.It posted a consolidated book-to-bill ratio of 1.5-1.0, with bookings worth $434.2 million.The total backlog at the end of the fourth quarter was $1.45 billion compared with $1.29 billion at the end of the third quarter of 2024.KTOS’ Segmental PerformanceUnmanned Systems: Net revenues improved 10.3% year over year to $61.1 million.Kratos Government Solutions: Net revenues improved 1.6% to $222 million on a year-over-year basis.Financial Details of KTOSAs of Dec. 29, 2024, cash and cash equivalents totaled $329.3 million, up from $72.8 million as of Dec. 31, 2023.The long-term debt amounted to $174.6 million as of Dec. 29, 2024, down from $219.3 million recorded as of Dec. 31, 2023.The net cash flow from operating activities amounted to $49.7 million during 2024 compared with $65.2 million at the end of 2023.Kratos Defense’s 2025 GuidanceKratos Defense has introduced its first-quarter and full-year 2025 guidance.KTOS projects first-quarter 2025 revenues to be in the range of $285-$295 million. The Zacks Consensus Estimate for revenues is pegged at $303.5 million, higher than the company’s guided range.KTOS expects 2025 revenues to be in the $1.26-$1.29 billion range. The Zacks Consensus Estimate for revenues is pegged at $1.28 million, almost in line with the mid-point of the company’s guided range.Kratos Defense expects operating cash flows to be in the range of $50-$60 million and free cash outflow to be in the range of $75-$85 million for 2025.KTOS’ Zacks RankKratos Defense currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Defense ReleasesTeledyne Technologies Inc. TDY reported fourth-quarter 2024 adjusted earnings of $5.52 per share, which surpassed the Zacks Consensus Estimate of $5.23 by 5.5%. Total sales were $1.50 billion, which beat the consensus estimate of $1.45 billion by 3.7%.Textron Inc. TXT reported fourth-quarter 2024 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.25 by 7.2%. The company reported total revenues of $3.61 billion, which missed the consensus estimate of $3.74 billion by 3.5%.Hexcel Corporation HXL reported fourth-quarter 2024 adjusted earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 51 cents by 2%. The company’s net sales totaled $473.8 million, which beat the consensus estimate of $471 million by 0.6%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Textron Inc. (TXT): Free Stock Analysis Report Hexcel Corporation (HXL): Free Stock Analysis Report Teledyne Technologies Incorporated (TDY): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks