Kratos Defense reports Q3 EPS 11c, consensus 8c

Reports Q3 revenue $275.9M, consensus $277.2M…For the third quarter of 2024, Kratos reported consolidated bookings of $267.2 million and a book-to-bill ratio of 1.0 to 1.0, with consolidated bookings of $1.24 billion and a book-to-bill ratio of 1.1 to 1.0 for the last twelve months ended September 29. Consolidated backlog was $1.294 billion on September 29, 2024 and $1.303 billion on June 30, 2024. Kratos’ bid and proposal pipeline was $12.0 billion at September 29 and June 30, 2024. Backlog at September 29, 2024 was comprised of funded backlog of $1.098 billion and unfunded backlog of $195.4 million. Eric DeMarco, Kratos’ President and CEO, said, “Kratos’ strategy of making internally funded investments, to be first to market with relevant hardware, software and systems, in coordination with our partners and customers is working, as reflected in our financial results and our $12 billion opportunity pipeline. A recent representative example of this success is the successful flight of Kratos’ Zeus 1 and Zeus 2 system solid rocket motor stack with our customer’s payload, positioning Kratos for potential growth above our current future revenue year over year 10% target beginning in 2026.” Mr. DeMarco went on, “Consistent with the success of and opportunities from Kratos’ strategy, earlier this year we completed an equity raise to position the Company to ensure successful execution on programs we have received and expect to receive. As an update to the related investments we are making: Kratos is currently manufacturing ~ 165 jet drones a year and we are now positioned to increase to ~400 a year including Valkyrie. “