Kratos Defense Stock Still Not Profitable -- and That's OK

Kratos Defense Stock Still Not Profitable -- and That's OK

Last quarter, Kratos Defense & Security Solutions (NASDAQ: KTOS) made a big mistake, outright promising to deliver a positive profit in its fiscal second quarter and then failing to do so. Investors balked at the betrayal, bidding Kratos shares down 9% when the company failed to deliver what it had promised.

This time around, Kratos was careful not to make that same mistake. Prior to reporting Q3 earnings, Kratos had made plenty of positive noises about how it hoped most of its business divisions would "generate positive cash flow in 2017," how revenues would grow and profit margins would expand -- but management was very careful not to promise investors a GAAP profit this time around.

And they didn't, because...

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Source: Fool.com