KTOS - Kratos Defense & Security Solutions slides after supply chain disruptions hurt guidance
Kratos Defense & Security Solutions (NASDAQ:KTOS) fell 9%, Tuesday, after the company set lower-end of the guidance range below the consensus estimate. In Q1 2022 earnings report, Kratos said it expects second quarter's revenue between $205-$215M vs. consensus of $212.19M. For full-year, revenue guidance range is $880-$920M vs. consensus of $897.44M. Adjusted EBITDA is expected between $11-$14M for Q2 and $85-$89M for FY2022. Free Cash Flow Use for the full-year to be from -$30 to -$40M. The soft guidance reflects the challenging business environment where Kratos points out to increased costs of certain raw materials, capacity issue and lack of skilled workforce to negatively impact its Q2 Revenue and Adjusted EBITDA by ~$15-$17M and $2-$4M, respectively. Full year revenue sees $34-$38M impact. Results Highlights: Q1 Revenue of $196.2M (+1.0% Y/Y) misses by $1.49M. The increased revenues include the contribution of about $14.7M from the recently acquired Cosmic AES and CTT, offset by a reduction
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Kratos Defense & Security Solutions slides after supply chain disruptions hurt guidance