On August 8, Kratos Defense & Security Solutions rose 5.17% in regular trading, trading at $60.38/share, with turnover of $179 million. The stock continues to rally following a blowout Q2 earnings report and a wave of institutional upgrades.
The company reported Q2 adjusted EPS of $0.21, beating the consensus estimate of $0.14 by 50% and representing a 90.91% year-over-year increase. Revenue came in at $458.8 million, significantly above the $410.4 million estimate. Management provided an optimistic outlook, stating that business momentum is expected to accelerate in the second half and into next year.
The earnings catalyst has triggered a series of analyst upgrades: Piper Sandler upgraded to Overweight with a $75 price target, Wedbush initiated at Outperform with an $85 target, and JPMorgan upgraded to Overweight. Additionally, the company recently secured major contracts including a ~$156 million exclusive mobile counter-drone system contract from the U.S. Department of Energy and a ~$100 million space domain awareness system contract.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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