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Drone Maker Kratos Crushed Sales Estimates. The Stock Is Down.

1. Kratos reported Q3 earnings of 14 cents per share on $347.6 million sales. 2. 2026 and 2027 sales growth guidance is 15%-20% and 18%-23%, respectively. 3. Acquisition of Orbit Technologies for $356.3 million enhances communication capabilities. 4. Shares dropped 7.3% in after-hours trading, despite strong earnings. 5. High expectations may have contributed to the post-earnings stock decline.

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FAQ

Why Neutral?

While earnings beat estimates, lower guidance for Q4 fell short of expectations.

How important is it?

The guidance and acquisition strongly influence future revenue but were overshadowed by earnings disappointment.

Why Short Term?

Immediate impact seen in after-hours trading, but growth outlook remains positive.

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