Karman (NYSE:KRMN) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Karman (NYSE:KRMN) posted its quarterly earnings data on Tuesday. The company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.03, FiscalAI reports. Karman had a net margin of 5.73% and a return on equity of 15.29%. The firm had revenue of $151.21 million for the quarter, compared to the consensus estimate of $150.19 million. During the same quarter in the prior year, the company posted $0.05 earnings per share. The company’s revenue for the quarter was up 51.0% compared to the same quarter last year.

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 Stock Performance

Shares of NYSE KRMN traded up $0.37 during midday trading on Thursday, reaching $67.65. 2,677,179 shares of the stock were exchanged, compared to its average volume of 2,085,652. The firm has a market cap of $8.97 billion, a price-to-earnings ratio of 293.73 and a beta of 0.68. Karman has a twelve month low of $41.29 and a twelve month high of $118.38. The firm has a 50-day simple moving average of $85.40 and a two-hundred day simple moving average of $83.48. The company has a quick ratio of 3.17, a current ratio of 3.29 and a debt-to-equity ratio of 1.50.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on KRMN shares. KeyCorp upped their price objective on shares of Karman from $80.00 to $122.00 and gave the company an “overweight” rating in a report on Wednesday, January 28th. Robert W. Baird raised their price target on shares of Karman from $115.00 to $135.00 and gave the stock an “outperform” rating in a research report on Friday, March 20th. Weiss Ratings raised shares of Karman from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday. BWS Financial reissued a “sell” rating and set a $37.00 price target on shares of Karman in a research report on Friday, March 27th. Finally, Piper Sandler raised shares of Karman from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $110.00 to $127.00 in a research report on Friday, March 6th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $114.60.

Institutional Trading of Karman

Several institutional investors have recently bought and sold shares of KRMN. Robert Wood Johnson Foundation purchased a new stake in Karman in the 3rd quarter worth approximately $70,488,000. Congress Asset Management Co. purchased a new position in shares of Karman during the 4th quarter worth $24,212,000. Federated Hermes Inc. purchased a new position in shares of Karman during the 3rd quarter worth $2,055,000. UBS Group AG lifted its stake in shares of Karman by 103.7% during the 4th quarter. UBS Group AG now owns 926,976 shares of the company’s stock worth $67,827,000 after purchasing an additional 471,894 shares during the period. Finally, TimesSquare Capital Management LLC lifted its stake in shares of Karman by 361.7% during the 3rd quarter. TimesSquare Capital Management LLC now owns 1,546,905 shares of the company’s stock worth $111,687,000 after purchasing an additional 1,211,845 shares during the period.

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.