NASDAQ$KTOS

Kratos Defense & Security Solutions Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported third quarter results with revenue increase and affirmed full year financial forecast.

Kratos reported a slight increase in revenue for Q3 2024, with $275.9 million compared to $274.6 million in Q3 2023. The company's operating income was $6.5 million, and net income reached $3.2 million. The consolidated book-to-bill ratio stood at 1.0 to 1.0.

  • Third quarter revenues reached $275.9 million, a slight increase from $274.6 million in the same period last year.
  • Unmanned Systems revenues grew to $64.2 million, compared to $56.7 million in Q3 2023.
  • The company's consolidated book to bill ratio for Q3 2024 was 1.0 to 1.
  • Kratos is positioned to increase jet drone production to ~400 a year including Valkyrie.

Headline financials

Total Revenue

$276M

Previous: $275M+0.5%
EPS

$0.02

Previous: $0.12-83.3%
Adjusted EBITDA

$24.6M

No prior period
Capital Expenditures

-$15.3M

Previous: -$14.2M-7.7%
Free Cash Flow

$3.2M

Previous: -$1.6M+300.0%
Net Income

$3.2M

Previous: -$1.6M+300.0%
Operating Income

$6.5M

Previous: $12.2M-46.7%
Gross Profit

$69.2M

Previous: $73.4M-5.7%
Cash & Equivalents

$302M

Previous: $42.2M+614.5%
Total Assets

$1.91B

Previous: $1.59B+20.2%
R&D Expense

$9.9M

Previous: $10.3M-3.9%
Stock-Based Comp

$7.2M

Previous: $6.4M+12.5%

Revenue & EPS history

Kratos · Revenue · Quarterly

$276M

Q3 2024+0.5%vs Q3 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Kratos · $275M total across 2 segments · Q3 2023

  • Kratos Government Solutions
    $218M
  • Unmanned Systems
    $56.7M

Forward guidance

Kratos provided initial Q4 2024 financial guidance and affirmed full year 2024 guidance, which includes assumptions for business mix, contract execution, supply chain, and employee sourcing. The guidance also considers the Federal Fiscal Year 2025 Continuing Resolution Authorization, which is expected to limit new program awards and production contract funding.

Tailwinds

  • Revenues: $270 - $295 million
  • R&D: $10 - $11 million
  • Operating Income: $3 - $7 million
  • Depreciation: $8 - $9 million
  • Amortization: $2 - $3 million

Headwinds

  • Stock Based Compensation: $6 - $7 million
  • Adjusted EBITDA: $21 - $26 million
  • Capital Expenditures: $60 - $70 million
  • Free Cash Flow Use: ($10 - $30) million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.5%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+4.3%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+19.6%

Q2 2016

Best reaction

-25.9%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-3.9%-1.2%
Q4 2025-8.6%-8.6%-19.6%
Q3 2025-14.2%-12.2%-15.2%
Q1 2025-5.2%-6.3%+12.2%
Q4 2024+5.2%+5.7%+22.9%
Q3 2024+7.0%+12.3%+15.3%
Q2 2024-3.0%-3.6%+3.6%
Q1 2024+4.4%+4.4%+9.4%
Q4 2023+13.3%+13.0%-5.4%
Q3 2023+0.2%+3.3%+13.4%
Q2 2023+13.0%+17.0%+10.3%
Q1 2023+6.7%+0.8%+5.9%
Q4 2022+14.1%+11.2%+16.8%
Q3 2022+0.1%+0.2%-8.2%
Q2 2022-2.5%-4.9%-20.6%
Q1 2022-13.9%-17.4%-9.5%
Q4 2021-8.6%+13.5%+27.4%
Q3 2021-5.5%-1.1%-10.6%
Q2 2021-11.8%-8.3%-10.0%
Q1 2021+3.4%-0.5%+0.4%
Q4 2020-8.5%-10.0%-13.4%
Q3 2020-1.8%+4.8%+11.3%
Q2 2020+5.7%+5.8%+6.7%
Q1 2020+16.2%+8.6%+28.1%
Q4 2019-25.9%-19.7%-35.6%
Q3 2019+5.2%+12.2%-2.5%
Q2 2019-13.9%-20.6%-18.9%
Q1 2019+13.1%+22.0%+42.1%
Q4 2018-2.8%-2.0%-9.1%
Q3 2018+14.8%+19.2%+5.4%
Q2 2018-4.8%-1.9%+2.5%
Q1 2018+5.8%+4.4%+8.8%
Q4 2017-7.8%-8.6%-14.1%
Q3 2017-7.6%-6.1%-14.0%
Q2 2017-10.9%-11.8%-1.1%
Q1 2017+17.2%+18.8%+40.5%
Q4 2016-1.2%-10.4%-4.9%
Q3 2016+8.3%+3.2%+43.3%
Q2 2016+19.6%+24.2%+56.4%
Q1 2016-14.4%
Q4 2015+10.6%
Q3 2015-3.4%
Q2 2015-6.2%
Q1 2015-2.4%
Q4 2014-0.2%
Q3 2014-12.7%
Q2 2014+4.6%
Q1 2014+2.5%
Q4 2013-6.4%
Q3 2013-15.0%
Q2 2013+3.5%
Q1 2013-0.9%
Q4 2012-3.6%
Q1 2011-3.6%
Q3 2012-13.7%
Q2 2012-8.0%
Q1 2012-3.8%
Q4 2009+13.4%
Q4 2011+13.4%
Q3 2010-9.8%
Q3 2011-9.8%
Q2 2010-16.8%
Q2 2011-16.8%
Q4 2010-16.8%
Q1 2010-0.4%

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