Aerospace and defense company Kratos (NASDAQ: KTOS) will be announcing earnings results this Thursday after market close. Here’s what you need to know.
Kratos beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $302.6 million, up 9.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
Is Kratos a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kratos’s revenue to grow 1.8% year on year to $305.5 million, slowing from the 16.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kratos has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Kratos’s peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BWX delivered year-on-year revenue growth of 12.1%, beating analysts’ expectations by 7.2%, and General Dynamics reported revenues up 8.9%, topping estimates by 5.7%. BWX traded up 17.8% following the results while General Dynamics was also up 5.7%.
Read our full analysis of BWX’s results here and General Dynamics’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 2.1% on average over the last month. Kratos is up 32.6% during the same time and is heading into earnings with an average analyst price target of $57.46 (compared to the current share price of $59.37).
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