Shares of Kratos Defense & Security Solutions, Inc. KTOS increased 4% to reach $20.16 on Nov 3, reflecting optimism of investors following the company's solid Q3 results.The company reported third-quarter 2020 earnings of 14 cents per share, which surpassed the Zacks Consensus Estimate of 9 cents by 55.6%. The bottom line, moreover, improved 7.7% from the prior-year quarter’s earnings of 13 cents per share.Barring one-time adjustments, the company reported a GAAP earnings of 2 cents per share in the third quarter of 2020.Total RevenuesTotal revenues amounted to $202 million in the third quarter, in line with the Zacks Consensus Estimate. Revenues improved 9.7% from $184.1 million reported in the year-ago quarter. The year-over-year upside was led by revenues generated from higher product sales.Operational UpdateKratos’ operating expenses amounted to $41.2 million in the quarter compared with the prior-year quarter’s $34 million. Selling, general and administrative expenses were up 12.6%, while research and development expenses soared 67.4%.The company reported third-quarter 2020 operating income of $12.7 million compared with the operating income of $11.5 million reported in the third quarter of 2019.Kratos reported third-quarter 2020 bookings of $356.7 million and a book-to-bill ratio of 1.8 to 1.0, with a backlog of $873.1 million as of Sep 27, 2020.Kratos Defense Security Solutions, Inc. Price, Consensus and EPS Surprise Kratos Defense Security Solutions, Inc. price-consensus-eps-surprise-chart | Kratos Defense Security Solutions, Inc. QuoteSegmental PerformanceUnmanned Systems: Net sales during the third quarter improved 17.1% year over year to $53.5 million.Government Solutions: Net sales in the third quarter grew 7.3% year over year to $148.5 million.Financial DetailsAs of Sep 27, 2020, cash and cash equivalents were $374.7 million compared with $172.6 million as of Dec 31, 2019.Long-term debt, including net of current portion, totaled $300.3 million as of Sep 27, 2020, up from $295.1 million as of Dec 31, 2019.At the end of the first nine months of 2020, cash generated from operating activities summed $19.1 million compared with $30.2 million in the first nine months of 2019.2020 GuidanceFor 2020, the company affirms its revenue guidance of $740-$780 million. The Zacks Consensus Estimate for full-year sales is pegged at $761.7 million, which lies above the midpoint of the company’s projected range.Zacks RankKratos currently carries a Zacks Rank #4 (Sell).Recent Defense ReleasesLockheed Martin LMT, a Zacks Rank #3 (Hold) company, reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Boeing Company BA, a Zacks Rank #3 company, incurred adjusted loss of $1.39 per share for third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.33.General Dynamics GD, a Zacks Rank #3 company, reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.Zacks’ Single Best Pick to DoubleFrom thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.Click Here, See It Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Kratos Defense Security Solutions, Inc. (KTOS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research