KTOS - Kratos trims FY forecast on labor shortages inflation woes

• Shares of Kratos Defense ( NASDAQ: KTOS ) fell as much as 10.7% in early trading hours on Friday after the IT security company reported Q3 results .
• On Thursday after the bell, Kratos posted Q3 GAAP EPS of -$0.06 vs estimates of -$0.02. However, the company beat revenue consensus by $1.6M at $228.6M (+14.0% Y/Y).
• KTOS cut its FY2022 revenue forecast after factoring in skilled labor shortages, inflation and supply chain constraints to $880M - $900M (consensus $906.55M) from prior outlook of $890M - $930M.
• "We have also determined that as a result of the continuing incredibly tight labor market for qualified machinists and skilled production personnel, including those with security clearances, that we will not achieve by this fiscal year end our previous forecast net increase headcount target to execute on our backlog and maintain our indirect rates." - President and CEO Eric DeMarco
• Other metrics: Q3 consolidated bookings of $246.5M, adj EBITDA of $20.0M and a book to bill ratio of 1.1 to 1.0.
• Stock is down 44.3% YTD.

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