Kratos (KTOS.US) is a US-based 'Aerospace and Defence' company that operates in the combat systems, cyber security, drones and satellite communications industries. The company is known for its advanced technology solutions for US government agencies and the military. The company also has a track record of working with NASA, among others.
The company's Q4 2021 results were marginally better than analysts' forecasts although the company continues to post losses. Nevertheless, publication of the quarterly results caused a jump (over 20%) in the value of Kratos shares, which have been in a downtrend for a long time.
- Earnings, adjusted for GAAP, came in at $0.11 per share. The results beat Wall Street's expectations of $0.09 per share;
- Company posted revenue of $211.6 million in Q4 2021, which also beat analysts' forecasts of $208.6 million.
Disturbing political situations and military conflict in Ukraine provided fuel for the rally. Due to the rising tensions between Washington - Moscow and Beijing, investors have been clearly expecting an increase in the value of companies from the defence sector in recent years. Part of the market is even speculating that rivalry may again move into space, which has already happened during the Cold War.
Shares of relatively small-cap companies like Kratos may experience high volatility during this period and attract speculators. At the same time, (KTOS.US) provided positive outlook for 2022:
- Kratos expects full-year revenues in the range of USD 880 million to USD 920 million (more than 10% higher than in 2021)
- For Q1 2022, Kratos expects revenue in the range of $190m to $200m.
Kratos currently has 5 'Buy' recommendations and 3 'Hold' recommendations from analysts published on Marketbeat.
Kratos (KTOS.US) stock has been moving in a downtrend for a long time. Nevertheless this week prices rose sharply following the release of quarterly earnings. Potential break above the major resistance zone around $19.00 would indicate that sentiment may shifted to bullish. Nevertheless as long as price sits below this level, another downard move towards local support at $16.05 may be launched. Source: xStation5
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