- Revenue Forecast: Kratos has raised its full-year revenue forecast to a range of $1.29 billion to $1.31 billion, previously estimated at $1.26 billion to $1.29 billion.
- Adjusted EBITDA Forecast: The company now projects its adjusted EBITDA for the year to be between $114 million and $120 million, up from an earlier range of $112 million to $118 million.
- Third Quarter Projections: Revenue is expected to be between $315 million and $325 million, slightly below the previous estimate of $327.4 million. Adjusted EBITDA is forecasted to be in the range of $25 million to $30 million, against an estimate of $31 million.
- Second Quarter Performance: The adjusted earnings per share (EPS) were 11 cents, compared to 14 cents from the previous year, but exceeded the market estimate of 9.8 cents.
- Revenue Growth: For the second quarter, Kratos reported revenues of $351.5 million, marking a 17% increase year-over-year and beating the estimate of $306.5 million.
- Market Outlook: The global defense and national security market, valued at approximately $2.5 trillion, is expected to continue growing, driven by the United States’ “peace through strength” strategy.
- Analyst Recommendations: Kratos currently has 12 buy ratings, 3 hold ratings, and no sell ratings from analysts.
A look at Kratos Defense & Security Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Kratos Defense & Security Solutions has a promising long-term outlook. With a Growth score of 4 and a Momentum score of 5, the company is positioned for strong expansion and positive market performance in the future. Additionally, Kratos demonstrates resilience with a score of 3, showing its ability to weather challenges. However, the company has room for improvement in terms of Value and Dividend scores, indicating that investors may find better opportunities for value and dividends elsewhere.
Overall, Kratos Defense & Security Solutions, Inc. operates as a defense contractor and security systems integrator with a focus on providing services for the federal government, state, and local agencies. The company excels in areas such as weapon systems lifecycle support, military weapon range, and security and surveillance systems. With a solid Growth and Momentum score, Kratos shows potential for continued success in the defense and security industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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