The company earned $0.08 per share in the most recent quarter, matching analyst expectations, on revenue that at $249.3 million beat the consensus estimate by about $7 million. For the full year, Kratos revenue grew by 10.7%, and the company ended the year with a backlog of $201.6 million in future business.
"As we begin 2023, every Kratos business is expecting organic growth and we are forecasting Kratos' consolidated '23 over '22 revenue growth of approximately 10%, with increased margins, reduced internally funded investments and increased cash flow," CEO Eric DeMarco said during the company's post-earnings conference call.
The results and commentary were strong enough to prompt Canaccord analyst Austin Moeller to upgrade Kratos to buy from hold, and raise the firm's price target to $14 from $11.50. Moeller noted that management was "particularly enthusiastic" about potential growth in its government business.