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Kratos Defense (KTOS) to Post Q4 Earnings: What's in Store?

Zacks Equity Research

Kratos Defense & Security Solutions, Inc. KTOS is set to release fourth-quarter and 2019 results on Feb 24, after market close.

In the last reported quarter, the company delivered a positive earnings surprise of 28.57%. Moreover, Kratos’ earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 98.22%.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

During the fourth quarter, Kratos won a handful of major contracts, which might have boosted its quarterly backlog.

Per the company’s announcement in the third-quarter earnings call, solid performance by its C5ISR Modular Systems division and microwave business is expected to have boosted the top line in the soon-to-be-reported quarter. Also, its industry-leading target drone business, the single source serving the United States Army, Navy and Air Force, is expected to have contributed to growth in the fourth quarter.

Backed by such robust projections, the company is expected to have delivered solid top and bottom-line performance in the quarter to be reported.

The Zacks Consensus Estimate for fourth-quarter revenues stands at $197.8 million, which indicates a rise of 20.3% from the year-ago quarter’s reported figure. Also, the Zacks Consensus Estimate for Kratos’ fourth-quarter earnings currently pegged at 11 cents implies a 22.2% rise from the prior-year quarter’s reported figure.

Kratos Defense & Security Solutions, Inc. Price and EPS Surprise

Kratos Defense & Security Solutions, Inc. Price and EPS Surprise
Kratos Defense & Security Solutions, Inc. Price and EPS Surprise

Kratos Defense & Security Solutions, Inc. price-eps-surprise | Kratos Defense & Security Solutions, Inc. Quote

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What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Kratos in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Kratos has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

A Stock to Consider

Here is a defense company you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this quarter.

Heico Corporation HEI is expected to release first-quarter fiscal 2020 results soon. The company has an Earnings ESP of +8.94% and a Zacks Rank #2.

Recent Defense Releases

Teledyne Technologies Inc. TDY reported fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came above the guided range of $2.71-$2.76 for the reported quarter.

Lockheed Martin Corp. LMT reported fourth-quarter 2019 earnings of $5.29 per share, which surpassed the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from $4.39 in the year-ago quarter.

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Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
 
Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report
 
Heico Corporation (HEI) : Free Stock Analysis Report
 
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