On August 5, Kratos Defense & Security Solutions rose 6.02% in pre-market trading, trading at $55.35/share, with turnover of $387,500.
The company reported Q2 adjusted EPS of $0.21, beating the analyst consensus estimate of $0.14 by 50% and representing a 90.91% year-over-year increase. Revenue came in at $458.8 million, surpassing the $410.4 million estimate. Management guided that business momentum is expected to accelerate in the second half and into the following year.
The earnings release follows a series of major contract wins, including an approximately $156 million exclusive mobile counter-drone systems contract from the U.S. Department of Energy's Office of Secure Transportation and an approximately $100 million sole-source space domain awareness systems contract. Additionally, Wedbush initiated coverage with an Outperform rating and $85 price target, while JPMorgan upgraded the stock to Overweight. Multiple catalysts converged to drive shares higher.
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