Karman (NYSE:KRMN) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Karman (NYSE:KRMN) announced its earnings results on Tuesday. The company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.08 by $0.03, FiscalAI reports. The company had revenue of $151.21 million during the quarter. Karman had a net margin of 3.68% and a return on equity of 13.15%. The business’s revenue for the quarter was up 51.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.05 EPS.

Here are the key takeaways from Karman’s conference call:

• Karman reported a record first quarter with revenue of $151 million, adjusted EBITDA of $45 million, and gross profit of $64 million, while net income turned positive versus a loss a year ago.
• Backlog rose to more than $1 billion, and management said the company now has about 90% visibility to the midpoint of its full-year revenue guidance.
• The company raised full-year 2026 guidance to revenue of $720 million-$735 million and adjusted EBITDA of $208.5 million-$219.5 million, implying strong year-over-year growth.
• Management highlighted a favorable demand backdrop across hypersonics, missile defense, drones, maritime defense, and space launch, citing increased government funding and customer production commitments.
• Karman said it received written contingent demand commitments from four major customers spanning 4-7 years, which could ultimately translate into more than $1 billion of revenue and improve longer-term planning visibility.

Karman Trading Up 6.3%

Shares of KRMN opened at $62.51 on Wednesday. The firm’s 50 day simple moving average is $85.91 and its 200 day simple moving average is $83.58. The company has a market capitalization of $8.28 billion, a P/E ratio of 480.89 and a beta of 0.68. The company has a debt-to-equity ratio of 1.50, a current ratio of 3.29 and a quick ratio of 3.17. Karman has a 1-year low of $38.00 and a 1-year high of $118.38.

Analyst Upgrades and Downgrades

Several analysts have recently commented on KRMN shares. BWS Financial reiterated a “sell” rating and issued a $37.00 target price on shares of Karman in a report on Friday, March 27th. Truist Financial upgraded shares of Karman to a “strong-buy” rating in a report on Friday, May 1st. Raymond James Financial reiterated a “strong-buy” rating and issued a $130.00 target price on shares of Karman in a report on Thursday, January 22nd. KeyCorp increased their target price on shares of Karman from $80.00 to $122.00 and gave the company an “overweight” rating in a report on Wednesday, January 28th. Finally, Robert W. Baird increased their target price on shares of Karman from $115.00 to $135.00 and gave the company an “outperform” rating in a report on Friday, March 20th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Karman has a consensus rating of “Moderate Buy” and a consensus price target of $117.10.

Institutional Investors Weigh In On Karman

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. PNC Financial Services Group Inc. raised its stake in Karman by 37.4% in the first quarter. PNC Financial Services Group Inc. now owns 10,411 shares of the company’s stock valued at $833,000 after purchasing an additional 2,833 shares in the last quarter. Wilkerson Advisory Group LLC purchased a new position in shares of Karman during the first quarter worth approximately $77,000. Commonwealth Financial Services LLC purchased a new position in shares of Karman during the first quarter worth approximately $240,000. Dimensional Fund Advisors LP raised its stake in shares of Karman by 81.1% during the first quarter. Dimensional Fund Advisors LP now owns 47,381 shares of the company’s stock worth $3,793,000 after acquiring an additional 21,224 shares in the last quarter. Finally, Balefire LLC purchased a new position in shares of Karman during the first quarter worth approximately $216,000.

Karman Company Profile

We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications.