Mercury Systems beats Q2 revenue estimates, backlog up 8.8%

Overview

• Defense tech firm's Q2 revenue beat analysts' expectations

• Adjusted EBITDA beat analysts' expectations

• Net loss narrowed to $15 mln from $17.6 mln

• Company reported record backlog of $1.5 bln, up 8.8% yr/yr

Outlook

• Company did not provide specific guidance for future quarters or full year

Result Drivers

• HIGH-PRIORITY PROGRAMS - Mercury Systems attributed Q2 results to accelerated progress on high-priority customer programs, per CEO Bill Ballhaus

• STRONG BOOKINGS - Mercury Systems achieved Q2 bookings of $288 mln, contributing to a book-to-bill ratio of 1.23

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Mercury Systems Inc is $95.00, about 1.2% above its February 2 closing price of $93.89

• The stock recently traded at 73 times the next 12-month earnings vs. a P/E of 69 three months ago

Press Release: ID:nGNXbjY7XS

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