Defense contractor Kratos Defense & Security Solutions (NASDAQ: KTOS) posted solid results for the last three months of 2022, and management optimism about 2023 was strong enough to prompt an analyst upgrade. Investors are excited, sending shares of Kratos up as much as 19% on Friday morning.

Kratos is a maker of drones, defense electronics, and other products for the Pentagon and government buyers. Most of its drone revenue historically has been from selling "dumb" drones used for target practice, but the company has invested heavily in futuristic "loyal wingman" drones that can fly into battle with piloted aircraft.

The company earned $0.08 per share in the most recent quarter, matching analyst expectations, on revenue that at $249.3 million beat the consensus estimate by about $7 million. For the full year, Kratos revenue grew by 10.7%, and the company ended the year with a backlog of $201.6 million in future business.

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Source Fool.com