Kratos Defense & Security Solutions, a company specializing in communications, radar systems, and unmanned systems, is making headlines as its stock nears a two-year high. The San Diego-based firm recently reported a significant increase in earnings, with adjusted earnings per share rising to 12 cents on revenues of $273.8 million in the fourth quarter.
The company’s government solutions business unit experienced a 17% revenue surge to $218.4 million, while sales of unmanned systems declined by 11.6% to $55.4 million. Despite this, Kratos provided positive guidance for the first quarter and full-year sales.
Wall Street analysts forecast a 4.7% increase in full-year earnings per share, with revenue expected to reach $1.13 billion. Following the earnings report, KTOS stock jumped 17%, leading to increased investor interest.
Kratos is also poised to benefit from the U.S. Air Force’s plans to award contracts for next-generation drones, known as collaborative combat aircraft (CCA). These drones are designed to work alongside manned aircraft during missions and are equipped with advanced technologies like artificial intelligence and autonomous software.
Analysts believe that Kratos is well-positioned to secure subcontracting opportunities for the CCA program, potentially partnering with aerospace giant Northrop Grumman. This development has further boosted investor confidence in KTOS stock.
While the stock recently dipped by 2.4%, it has seen an overall increase of over 21% this month. With a strong Composite Rating and positive growth prospects, Kratos Defense & Security Solutions continues to be a key player in the defense industry.
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