Kratos Defense (KTOS) Q2 Earnings Top, Revenues Rise Y/Y
Kratos Defense & Security Solutions, Inc. KTOS reported second-quarter 2023 adjusted earnings of 9 cents per share, up 28.6% from 7 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 5 cents by 80%.
The company reported a GAAP loss of 2 cents per share compared with a loss of 4 cents in the second quarter of 2022.
Total Revenues
Total revenues were $256.9 million, which surpassed the Zacks Consensus Estimate of $236 million by 9%. Total revenues also increased 14.6% from $224.2 million recorded 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 and research and development expenses were up 6.7% and 7.6%, respectively, year over year. Depreciation expenses increased 15.4%, while expenses related to the amortization of intangible assets declined 12.5%.
The company reported second-quarter 2023 operating income of $6.7 million against an operating loss of $1.9 million in the year-ago quarter.
Consolidated book-to-bill ratio was recorded in the band of 1.1-1.0, with bookings worth $64.7 million for the second quarter.
Total backlog at the end of the reported quarter was $1.16 billion compared with $1.13 billion at the end of the first quarter.
Segmental Performance
Unmanned Systems: Net revenues declined 7.6% year over year to $52.1 million.
Government Solutions: Net revenues increased 22.1% year over year to $204.8 million.
Financial Details
As of Jun 25, 2023, cash and cash equivalents totaled $48.2 million, down from $81.3 million as of Dec 25, 2022. Long-term debt amounted to $232.1 million as of Jun 25, 2023, down from $250.2 million recorded as of Dec 25, 2022.
During the first six months of 2023, cash outflow from operating activities totaled $2.1 million compared with $29.5 million in the prior-year period.
Guidance
For the third quarter of 2023, KTOS expects revenues in the $240-$260 million range. The Zacks Consensus Estimate for third-quarter revenues is pegged at $253.7 million, higher than the midpoint of the company’s guided range.
For 2023, Kratos Defense still expects revenues in the $980-1,000 million range. The Zacks Consensus Estimate for full-year revenues is pinned at $994.2 million, higher than the midpoint of the company’s projected range.
Zacks Rank
Kratos Defense currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Q2 Defense Earnings
Lockheed Martin Corporation LMT reported second-quarter 2023 adjusted earnings of $6.73 per share, which surpassed the Zacks Consensus Estimate of $6.43 by 4.7%. The bottom line also improved 6.5% from the year-ago quarter's figure.
Net sales amounted to $16.69 billion, which surpassed the Zacks Consensus Estimate of $15.86 billion by 5.3%. The top line rose 8.1% from $15.45 billion registered in the year-ago quarter.
Hexcel Corporation HXL reported second-quarter 2023 adjusted earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.2%. The bottom line also improved 51.5% from the year-ago quarter’s level of 33 cents.
Net sales were $454 million, which beat the Zacks Consensus Estimate of $445 million by 2.2%. Also, the top line witnessed an improvement of 15.6% from the year-ago quarter’s level of $393 million.
Raytheon Technologies Corporation’s RTX second-quarter 2023 adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate of $1.17 by 10.3%. The bottom line also improved 11% from the year-ago quarter’s level of $1.16.
Sales of $18,315 million beat the Zacks Consensus Estimate of $17,543 million by 4.4%. The figure also rose 12.3% from $16,314 million recorded in the year-ago period.
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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
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