Yahoo Finance Kratos Defense (KTOS) Q1 Earnings Beat, Revenues Rise Y/Y
Kratos Defense & Security Solutions, Inc.’s KTOS shares have declined 5.5% to $13.21 since the company released its first-quarter 2023 results.
Kratos Defense reported first-quarter 2023 adjusted earnings of 6 cents per share, up 50% from the 4 cents reported in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 3 cents by 100%.
The company reported a GAAP loss of 5 cents per share compared with a loss of 12 cents in the first quarter of 2022.
Total Revenues
Total revenues were $231.8 million, which surpassed the Zacks Consensus Estimate of $224 million by 3.6%. Total revenues also increased 18.1% from $196.2 million in the year-ago quarter.
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. Quote
Operational Update
Kratos Defense’s SG&A expenses were up 11.2%, and research and development expenses surged 10.9% year over year. Depreciation expenses and expenses related to the amortization of intangible assets decreased 7.7% and 5.9%, respectively.
KTOS reported a first-quarter 2023 operating income of $0.5 million against the operating loss of $1.2 million in the year-ago quarter.
Kratos Defense’s consolidated book-to-bill ratio for the first quarter of 2023 was in the band of 1.1-1.0, with bookings of $1.1 billion for the first quarter of 2023.
Kratos Defense’s total backlog at the end of the first quarter of 2023 was $1.13 billion compared with $1.11 billion at the end of the fourth quarter of 2022.
Segmental Performance
Unmanned Systems: Net revenues in the first quarter declined 8.7% year over year to $48 million.
Government Solutions: Net revenues in the first quarter increased 27.9% year over year to $183.8 million.
Financial Details
As of Mar 26, 2023, cash and cash equivalents were $46.7 million compared with $81.3 million as of Dec 25, 2022. The long-term debt totaled $250.3 million as of Mar 26, 2023, in line with the debt level as of Dec 25, 2022.
During the three months ended Mar 26, 2023, the cash outflow from operating activities was $25.7 million compared with the cash outflow of $7.9 million in the previous year.
Guidance
For the second quarter of 2023, KTOS expects to generate revenues in the $230-$240 million range. The Zacks Consensus Estimate for second-quarter revenues is pegged at $235.1 million, in line with the company’s projected range.
For 2023, Kratos Defense currently expects revenues in the $980-1,000 million range. The Zacks Consensus Estimate for full-year revenues stands at $989.7 million, slightly lower than the midpoint of the company’s projected range.
Zacks Rank
Kratos Defense currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Huntington Ingalls Industries, Inc.’s HII first-quarter 2023 earnings of $3.23 per share decreased 2.7% from the $2.99 reported in the prior-year quarter. However, the bottom line surpassed the Zacks Consensus Estimate of $3.00 by 7.7%.
Total revenues came in at $2,674 million, beating the Zacks Consensus Estimate of $2,599.7 million by 2.9%. The top line increased 3.8% from $2,576 million in the year-ago quarter.
Hexcel Corporation HXL reported first-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 28.2%. The bottom line improved massively from the year-ago earnings of 22 cents per share, highlighting solid growth of 127.3%.
In the first quarter, net sales totaled $458 million, which beat the Zacks Consensus Estimate of $428 million by 6.8%. Also, the top line witnessed an improvement of 17.2% from the year-ago quarter’s $391 million.
Curtiss-Wright Corporation CW reported first-quarter 2023 adjusted earnings of $1.53 per share, which surpassed the Zacks Consensus Estimate of $1.41 by 8.5%. The bottom line rose 16.8% on a year-over-year basis.
In the quarter under review, the company’s net sales of $631 million went up 13% year over year. Also, the top line surpassed the Zacks Consensus Estimate of $594 million by 6.2%.
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
Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report
Hexcel Corporation (HXL) : Free Stock Analysis Report
Curtiss-Wright Corporation (CW) : Free Stock Analysis Report
Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report
