Stock Story -
Aerospace and defense company Kratos (NASDAQSG:KTOS) will be announcing earnings results tomorrow after market close. Here's what to look for.
Kratos beat analysts' revenue expectations by 10.7% last quarter, reporting revenues of $277.2 million, up 19.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue and earnings estimates.
Is Kratos a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Kratos's revenue to grow 7.5% year on year to $276.2 million, slowing from the 14.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 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 a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 6.3% on average.
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. Huntington Ingalls delivered year-on-year revenue growth of 6.8%, beating analysts' expectations by 4.7%, and Lockheed Martin (NYSE:LMT) reported revenues up 8.6%, topping estimates by 6.5%. Huntington Ingalls traded down 5.9% following the results while Lockheed Martin was up 8.5%.
Read the full analysis of Huntington Ingalls's and Lockheed Martin's results on StockStory.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices flat over the last month. Kratos's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $23.8 (compared to the current share price of $20.7).