On August 6, Kratos Defense & Security Solutions rose 5.1% in regular trading, trading at $57.955/share, with turnover of $70.49 million. The rally extended gains driven by the company's strong Q2 earnings report and a wave of analyst upgrades.
The company reported Q2 adjusted EPS of $0.21, significantly beating the consensus estimate of $0.14, representing a 90.91% year-over-year increase. Revenue came in at $458.8 million, well above the $410.4 million estimate. Management provided an optimistic outlook, projecting business momentum to accelerate in the second half and into next year.
Following the results, multiple institutions raised their ratings: Piper Sandler upgraded to Overweight with a $75 price target, Wedbush initiated at Outperform with an $85 target, and JPMorgan previously upgraded to Overweight. The earnings catalyst was further reinforced by recent major contract wins, including an approximately $156 million exclusive mobile counter-drone system contract from the U.S. Department of Energy and a roughly $100 million space domain awareness system contract.
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