Kratos Defense Shares Fall 8.7% on Disappointing Q1 Revenue Guidance
Kratos Defense reported adjusted Q4 EPS of $0.18 on $345.1 million revenue, both above estimates, but guided Q1 revenue below forecasts citing the government shutdown, triggering an 8.7% share drop to $86.06. Analysts at BTIG and J.P. Morgan raised price targets to $115 and $99, respectively.
1. Q4 Earnings Beat and Q1 Revenue Forecast
Kratos Defense delivered adjusted Q4 earnings of $0.18 per share on $345.1 million revenue, surpassing consensus, but issued Q1 revenue guidance below analyst forecasts due to disruptions from the recent government shutdown affecting contract timing.
2. Share Price Movement and Historical Context
The Q1 revenue shortfall prompted an 8.7% decline to $86.06, marking a 33.8% drop from its Jan. 20, 22-year high of $134, though shares remain up 261% over the past year.
3. Analyst Price Target Hikes
BTIG increased its price target to $115 while J.P. Morgan boosted its to $99, signaling confidence in Kratos’s longer-term defense and security solutions demand despite near-term headwinds.
4. Options Activity and Technical Indicators
Options volume surged with over 4,905 calls traded—double the daily average—and notable sell-to-open activity in March 145 calls and weekly 94-strike calls, as the 126-day moving average continued its upward trajectory.