KTOS Earnings Prediction
The chart below shows how KTOS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KTOS sees a -0.01% change in stock price 10 days leading up to the earnings, and a +5.98% change 10 days following the report. On the earnings day itself, the stock moves by -0.93%. This data can give you a slight idea of what to expect for the next quarter's release.
KTOS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
275.90M
0.47%
-8.06%
Gross Margin
25.08%
-6.17%
-2.49%
Operating Margin
2.43%
-45.27%
-41.73%
Net Margin
1.16%
6.42%
-55.89%
EPS
0.02
300.00%
-60.00%
No Data Available
KTOS Earnings Analysis
Kratos Defense & Security Solutions, Inc. Corporation (KTOS.O) Earnings Conference Call
Positive
Q3 Revenue Performance: 1. Strong Revenue Growth: Kratos reported Q3 2024 revenues of $275.9 million, exceeding the estimated range of $265 million to $280 million, driven by organic growth across nearly all business units.
Backlog and Financial Success: 2. Record Backlog and Future Growth: The microwave electronics business has a record backlog and is generating record financial results, with expectations to continue this trend into 2025.
Hypersonic System Program Award: 3. Successful Program Awards: Kratos received a new hypersonic system program award, expected to be one of the largest programs over its multi-year performance period, indicating strong future revenue potential.
Production Capacity Expansion: 4. Increased Production Capacity: The small turbojet engine facility in Michigan is now capable of producing approximately 10,000 engines annually, positioning Kratos for significant future contracts in drones and missiles.
2024 Financial Guidance Affirmed: 5. Affirmed Financial Guidance: The company affirmed its 2024 financial guidance and projected a 10% year-over-year revenue growth for 2025, reflecting confidence in ongoing and future contracts.
Negative
Commercial Satellite Revenue Decline: 1. Declining Commercial Satellite Revenue: Kratos' commercial satellite business is projected to decline by $30 million to $35 million in revenue for the year due to delays in satellite deliveries, significantly impacting overall financial performance.
Negative Cash Flow Impact: 2. Negative Free Cash Flow: The company reported a free cash flow usage of $9.2 million after funding capital expenditures of $15.3 million, indicating a strain on cash resources.
Rising Days Sales Outstanding: 3. Increased Days Sales Outstanding (DSO): Consolidated DSOs increased from 103 days in Q2 to 105 days in Q3, reflecting slower collection of receivables and potential cash flow issues.
Labor Retention Issues: 4. Operational Challenges in Labor: The company faces ongoing operational challenges related to obtaining and retaining qualified personnel, which is impacting profit margins due to increased personnel-related costs.
Capital Expenditure Delays: 5. Capital Expenditures Delayed: Approximately $10 million of capital expenditures initially expected to be incurred in 2024 are now expected to carry over into 2025, indicating potential delays in operational expansion and growth initiatives.
KTOS FAQs
How does KTOS typically perform around its earnings report dates?
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KTOS Earning Call Sentiment
Kratos Defense & Security Solutions, Inc. (KTOS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
KTOS.O
-3.31%Positive
The earnings call highlights strong financial performance, with revenue and EBITDA exceeding estimates. The partnership with GE Aerospace and positive guidance for 2024 revenue and growth contribute to a positive sentiment. The Q&A reveals optimism about defense spending and growth in various segments, despite some uncertainties. The market cap suggests moderate reaction, leading to a predicted stock price movement of 2% to 8%.
