Why Kratos Defense Stock Just Crashed 12%
Shares of military drone-builder Kratos Defense & Security Solutions (NASDAQ: KTOS) collapsed in Friday afternoon trading, falling 12.1% through 2:25 p.m. EDT on no obvious bad news.
No obvious new news, that is. But if you don't mind a bit of old news, take a stroll down memory lane with me to last week, when Kratos reported its second-quarter earnings, and warned investors that its "book-to-bill" ratio in the quarter fell below one (indicating slowing sales), and that its book-to-bill ratio in the company's all-important drone segment fell even further -- to 0.4.
Kratos also warned at the time that it wasn't going to even get close to hitting Wall Street targets for $216 million in sales this current third fiscal quarter, and that sales would probably max out at $205 million or less.
Source Fool.com
