Kratos (KTOS) To Report Earnings Tomorrow: Here Is What To Expect

Aerospace and defense company Kratos (NASDAQ:KTOS) will be reporting earnings this Wednesday after market close. Here’s what investors should know.

Kratos beat analysts’ revenue expectations last quarter, reporting revenues of $345.1 million, up 21.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

Is Kratos a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Kratos’s revenue to grow 13.4% year on year, improving from the 9.2% increase it recorded in the same quarter last year.

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 multiple times over the last two years.

Looking at Kratos’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. General Dynamics delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 5.9%, and BWX reported revenues up 26.1%, topping estimates by 2.7%. General Dynamics traded up 9.5% following the results.

Read our full analysis of General Dynamics’s results here and BWX’s results here.

There has been positive sentiment among investors in the defense contractors segment, with share prices up 7.6% on average over the last month. Kratos is down 16.1% during the same time and is heading into earnings with an average analyst price target of $116.75 (compared to the current share price of $62.07).

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