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Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2024 adjusted earnings of 14 cents per share, up 55.6% from 9 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 8 cents by 75%.
Kratos Defense reported GAAP earnings of 5 cents per share against a loss of 2 cents in the second quarter of 2023.
Total Revenues
Total revenues were $300.1 million, which surpassed the Zacks Consensus Estimate of $277 million by 8%. The figure also increased 16.8% from $256.9 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the Kratos Government Solutions and Unmanned Systems segments’ revenue growth.
Kratos Defense & Security Solutions, Inc. Price, Consensus and EPS Surprise
Kratos Defense’s selling, general and administrative expenses increased 11.7% year over year. Research and development expenses rose 3%. Depreciation expenses and expenses related to the amortization of intangible assets surged 80% and 57.1%, respectively.
The company reported operating income of $12.5 million, which increased massively from the year-ago quarter’s $1.8 million.
It posted a consolidated book-to-bill ratio of 1.1-1.0, with bookings worth $334.1 million.
The total backlog at the end of the second quarter was $1.30 billion compared with $1.27 billion at the end of the first quarter of 2024.
Segmental Performance
Unmanned Systems: Net revenues improved 63.7% year over year to $85.8 million.
Kratos Government Solutions: Net revenues increased 4.6% to $214.3 million on a year-over-year basis.
Financial Details
As of Jun 30, 2024, cash and cash equivalents totaled $308.2 million, up from $72.8 million as of Dec 31, 2023. The long-term debt amounted to $179.5 million as of Jun 30, 2024, down from $219.3 million recorded as of Dec 31, 2023.
During the second quarter, cash outflow from operating activities totaled $2 million compared with $2.2 million in the previous year.
Guidance
Kratos Defense has provided its outlook for the third quarter and reiterated its 2024 guidance. For the third quarter, it expects revenues to be in the $265-$280 million range. The Zacks Consensus Estimate for revenues is pegged at $290.4 million, higher than the company’s guided range.
For 2024, Kratos Defense still expects revenues to be in the range of $1.13-$1.15 billion. The consensus estimate for revenues is pegged at $1.15 billion, in line with the higher end of the company’s projected range.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.
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Kratos Defense (KTOS) Q2 Earnings Top, Revenues Rise Y/Y
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) reported second-quarter 2024 adjusted earnings of 14 cents per share, up 55.6% from 9 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 8 cents by 75%.
Kratos Defense reported GAAP earnings of 5 cents per share against a loss of 2 cents in the second quarter of 2023.
Total Revenues
Total revenues were $300.1 million, which surpassed the Zacks Consensus Estimate of $277 million by 8%. The figure also increased 16.8% from $256.9 million recorded in the year-ago quarter.
The year-over-year improvement can be attributed to the Kratos Government Solutions and Unmanned Systems segments’ revenue growth.
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 selling, general and administrative expenses increased 11.7% year over year. Research and development expenses rose 3%. Depreciation expenses and expenses related to the amortization of intangible assets surged 80% and 57.1%, respectively.
The company reported operating income of $12.5 million, which increased massively from the year-ago quarter’s $1.8 million.
It posted a consolidated book-to-bill ratio of 1.1-1.0, with bookings worth $334.1 million.
The total backlog at the end of the second quarter was $1.30 billion compared with $1.27 billion at the end of the first quarter of 2024.
Segmental Performance
Unmanned Systems: Net revenues improved 63.7% year over year to $85.8 million.
Kratos Government Solutions: Net revenues increased 4.6% to $214.3 million on a year-over-year basis.
Financial Details
As of Jun 30, 2024, cash and cash equivalents totaled $308.2 million, up from $72.8 million as of Dec 31, 2023. The long-term debt amounted to $179.5 million as of Jun 30, 2024, down from $219.3 million recorded as of Dec 31, 2023.
During the second quarter, cash outflow from operating activities totaled $2 million compared with $2.2 million in the previous year.
Guidance
Kratos Defense has provided its outlook for the third quarter and reiterated its 2024 guidance. For the third quarter, it expects revenues to be in the $265-$280 million range. The Zacks Consensus Estimate for revenues is pegged at $290.4 million, higher than the company’s guided range.
For 2024, Kratos Defense still expects revenues to be in the range of $1.13-$1.15 billion. The consensus estimate for revenues is pegged at $1.15 billion, in line with the higher end of the company’s projected range.
Zacks Rank
Kratos Defense currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2024 adjusted earnings of $4.58 per share, which surpassed the Zacks Consensus Estimate of $4.49 by 2%. However, the bottom line declined 1.9% from $4.67 recorded in the year-ago quarter.
Total sales were $1.37 billion, which missed the Zacks Consensus Estimate of $1.38 billion by 0.2%. The top line also declined 3.6% from $1.42 billion reported in the year-ago quarter.
Lockheed Martin Corporation (LMT - Free Report) reported second-quarter 2024 adjusted earnings of $7.11 per share, which beat the Zacks Consensus Estimate of $6.45 by 10.2%. The bottom line also improved 5.6% from the year-ago quarter's recorded figure of $6.73.
Net sales were $18.12 billion, which surpassed the Zacks Consensus Estimate of $17.10 billion by 6%. The top line also increased 8.6% from $16.69 billion reported in the year-ago quarter.
Textron Inc. (TXT - Free Report) reported second-quarter 2024 adjusted earnings of $1.54 per share, which surpassed the Zacks Consensus Estimate of $1.49 by 3.4%. The bottom line also improved 5.5% from the year-ago quarter’s figure of $1.46.
TXT reported total revenues of $3.53 billion, which missed the Zacks Consensus Estimate of $3.55 billion by 0.6%. However, the reported figure increased 3% from the year-ago quarter’s level of $3.42 billion.