Latest news with #KTOS
Yahoo
3 days ago
- Business
- Yahoo
Kratos Defense price target raised to $44 from $38 at Noble Capital
Noble Capital raised the firm's price target on Kratos Defense (KTOS) to $44 from $38 and keeps an Outperform rating on the shares. The shares have risen above the prior target, the analyst tells investors in a research note. The firm views the company's recent awards and demonstrations as further confirmation of the Kratos strategy 'in providing leading edge disruptive technology products and systems.' It remains positive on the growth potential for Kratos, both on the defense and commercial sides. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on KTOS: Disclaimer & DisclosureReport an Issue Kratos Defense price target raised to $44 from $33 at JPMorgan Kratos Defense to open new manufacturing facility in Oklahoma Cathie Wood Loads Up on Archer Aviation Stock (ACHR) Drone Stock AIRO Group (AIRO) Skyrockets 128% in Market Debut Kratos Defense announces participation in NATO's At-Sea Demonstration
Yahoo
11-06-2025
- Business
- Yahoo
KTOS Q1 Earnings Call: Product Expansion and Margin Investments Shape Outlook
Aerospace and defense company Kratos (NASDAQ:KTOS) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 9.2% year on year to $302.6 million. On the other hand, next quarter's revenue guidance of $305 million was less impressive, coming in 3.3% below analysts' estimates. Its non-GAAP profit of $0.12 per share was 32.8% above analysts' consensus estimates. Is now the time to buy KTOS? Find out in our full research report (it's free). Revenue: $302.6 million vs analyst estimates of $291.2 million (9.2% year-on-year growth, 3.9% beat) Adjusted EPS: $0.12 vs analyst estimates of $0.09 (32.8% beat) The company reconfirmed its revenue guidance for the full year of $1.27 billion at the midpoint EBITDA guidance for the full year is $115 million at the midpoint, below analyst estimates of $117.8 million Organic Revenue rose 7.4% year on year (19.4% in the same quarter last year) Market Capitalization: $6.03 billion Kratos' first quarter results reflected ongoing momentum in its core defense and aerospace markets, as management credited growth to strong order activity and continued execution across hypersonic systems, microwave electronics, and unmanned systems. CEO Eric DeMarco highlighted that 'Kratos is currently bidding on a number of large multi-hundred million dollar single award opportunities,' and noted that a record $12.6 billion opportunity pipeline underscores the breadth of market demand. The quarter saw meaningful organic revenue growth in microwave products and C5ISR (command, control, communications, computers, combat systems, intelligence, surveillance, and reconnaissance), driven by new contracts and elevated demand for military-grade systems. Looking ahead, Kratos' full-year outlook is supported by recent U.S. defense appropriations and a strong backlog, but management acknowledged operational headwinds, including cost pressures on certain fixed-price contracts and a planned facility move in Israel. CFO Deanna Lund explained, 'Our second quarter forecasted financial performance takes into consideration the expected several week downtime related to our Microwave Products facility move in Israel.' Management expects the hypersonics franchise, jet engines, and microwave electronics to be primary growth drivers, while tactical drone programs remain a potential upside. DeMarco cautioned that some revenue timing could shift due to government contracting delays but expressed confidence in the company's ability to manage supply chain and labor sourcing challenges throughout the year. Management attributed first quarter performance to robust demand for national security programs, expansion in hypersonics, and strategic investments in production capacity. Hypersonic systems ramp: Kratos is expanding its hypersonic franchise, with CEO Eric DeMarco citing successful initial flights of the Dark Fury vehicle and strong customer interest in operational hypersonic systems like Zeus and Erinyes. These programs are positioned as key future contributors given their lower production costs and readiness for deployment. Microwave electronics growth: International and domestic demand for microwave products, especially from Israeli and U.S. defense customers, drove record backlog and prompted investments in expanded manufacturing. Management noted that these components are increasingly critical for air defense and missile systems globally. C5ISR segment performance: The C5ISR business, which provides vital electronics for missile, radar, and defense systems, experienced notable contract wins and is supporting a wide range of U.S. and allied programs. Management emphasized this segment's unique position as a merchant supplier to multiple defense primes, enabling broader market access. Unmanned and tactical drones: While target drone demand remains strong due to global air defense needs, tactical drone programs (such as Valkyrie and Thanatos) continue to develop, with management opting not to count on these as near-term revenue drivers until contracts are secured. The company is producing Valkyrie aircraft ahead of potential awards to speed up customer delivery. Facility and supply chain investments: Kratos made substantial investments in expanding production capacity, particularly in microwave electronics and hypersonics. The planned move of its Israeli microwave facility is expected to temporarily impact margins next quarter, but management believes the action positions the company for long-term growth and higher-margin opportunities. Kratos' outlook is shaped by the scaling of hypersonics, engine production, and ongoing investments in manufacturing expansion, balanced against supply chain and contract cost headwinds. Hypersonics and jet engines lead: Management expects the hypersonic franchise to be the largest growth driver for the foreseeable future, with new operational rocket motors and flight vehicles in production and customer-funded programs ramping up. Jet engines and propulsion systems are also set to expand, as Kratos is designed into new missile and drone platforms. Margin and supply chain management: The company faces headwinds from elevated material and subcontractor costs, particularly in legacy fixed-price contracts for target drones. Management is actively working to qualify alternative suppliers and expects some cost relief, but significant margin improvement is projected for 2026 when new contracts reflect current cost structures. Production facility transitions: The move and expansion of the Israeli microwave electronics facility will cause temporary operational disruption in the next quarter. However, management anticipates regaining momentum as production ramps back up, with microwave products expected to deliver high-margin growth as global air defense demand persists. In the coming quarters, the StockStory team will be watching (1) the ramp of hypersonic and jet engine programs as new customer-funded contracts move into production, (2) margin recovery and cost management efforts in legacy fixed-price contracts as supply chain strategies unfold, and (3) the operational impact and post-move performance of the Israeli microwave electronics facility. Progress on tactical drone contract awards and commercial technology repurposing will also be important markers. Kratos currently trades at a forward P/E ratio of 72.4×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error 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
23-05-2025
- Business
- Yahoo
1 Russell 2000 Stock for Long-Term Investors and 2 to Be Wary Of
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here is one Russell 2000 stock that could deliver strong gains and two that may face some trouble. Market Cap: $1.21 billion Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor's visits. Why Is TDOC Not Exciting? Sales trends were unexciting over the last three years as its 6% annual growth was below the typical consumer internet company Focus on expanding its platform came at the expense of monetization as its average revenue per user fell by 5.3% annually Estimated sales decline of 1.3% for the next 12 months implies a challenging demand environment At $6.92 per share, Teladoc trades at 4x forward EV/EBITDA. If you're considering TDOC for your portfolio, see our FREE research report to learn more. Market Cap: $5.40 billion 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. Why Does KTOS Worry Us? 7 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Eroding returns on capital from an already low base indicate that management's recent investments are destroying value Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Kratos is trading at $35.38 per share, or 64.8x forward P/E. Dive into our free research report to see why there are better opportunities than KTOS. Market Cap: $5.63 billion Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects. Why Are We Bullish on ROAD? Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 40.3% Earnings per share have massively outperformed its peers over the last two years, increasing by 91% annually Free cash flow margin didn't grow over the last five years Construction Partners's stock price of $100.85 implies a valuation ratio of 42.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Washington Post
07-05-2025
- Business
- Washington Post
Kratos: Q1 Earnings Snapshot
ROUND ROCK, Texas — ROUND ROCK, Texas — Kratos Defense & Security Solutions Inc. (KTOS) on Wednesday reported first-quarter earnings of $4.5 million. The Round Rock, Texas-based company said it had profit of 3 cents per share. Earnings, adjusted for one-time gains and costs, came to 12 cents per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share. The military contractor posted revenue of $302.6 million in the period, also topping Street forecasts. Six analysts surveyed by Zacks expected $292.2 million. For the current quarter ending in June, Kratos said it expects revenue in the range of $300 million to $310 million. The company expects full-year revenue in the range of $1.26 billion to $1.29 billion. _____
Yahoo
29-04-2025
- Business
- Yahoo
3 Profitable Stocks Skating on Thin Ice
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". Profits are valuable, but they're not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are three profitable companies to avoid and some better opportunities instead. Trailing 12-Month GAAP Operating Margin: 2.6% 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. Why Does KTOS Worry Us? Long-term business health is up for debate as its cash burn has increased over the last five years Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results Kratos's stock price of $33.59 implies a valuation ratio of 58x forward price-to-earnings. Read our free research report to see why you should think twice about including KTOS in your portfolio, it's free. Trailing 12-Month GAAP Operating Margin: 17.2% With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE:TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide. Why Are We Hesitant About TMO? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 10 percentage points Diminishing returns on capital suggest its earlier profit pools are drying up At $420 per share, Thermo Fisher trades at 17.8x forward price-to-earnings. To fully understand why you should be careful with TMO, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 8.9% Founded in 2002 and growing into one of America's largest generic drug producers, Amneal Pharmaceuticals (NASDAQ:AMRX) develops, manufactures, and distributes generic medicines, specialty branded drugs, biosimilars, and injectable products for the U.S. healthcare market. Why Does AMRX Fall Short? Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.5 percentage points Underwhelming 2.4% return on capital reflects management's difficulties in finding profitable growth opportunities Amneal is trading at $7.76 per share, or 10.1x forward price-to-earnings. Check out our free in-depth research report to learn more about why AMRX doesn't pass our bar. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
