Kratos Defense & Security Solutions, Inc. KTOS reported third-quarter 2019 adjusted earnings of 9 cents per share, which outpaced the Zacks Consensus Estimate of 7 cents by 28.6%. The bottom line also improved 12.5% from the prior-year quarter’s earnings of 8 cents per share.Barring one-time adjustments, the company reported GAAP earnings of 2 cents per share, flat year over year.Total SalesNet sales totaled $184.1 million, which beat the Zacks Consensus Estimate of $184 million and increased 15.5% from $159.4 million reported in the year-ago quarter.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. QuoteOperational UpdateKratos’ operating expenses amounted to $37.1 million in the quarter compared with the prior-year quarter’s $34 million. Selling, general and administrative expenses were up 7.3%, while research and development expenses rose 4.6%.Kratos reported third-quarter 2019 operating income of $11.5 million, reflecting an increase of 13.9% from the third quarter of 2018.Kratos reported third-quarter 2019 bookings of $172.5 million and a book-to-bill ratio of 0.9 to 1.0. Backlog as of Sep 29, 2019 was $608.7 million compared with$620.3 million as ofJun 30, 2019.Segmental PerformanceUnmanned Systems: Net sales during the third quarter increased 37.2% year over year to $45.7 million.Government Solutions: Net sales in the third quarter increased 9.8% year over year to $138.4 million.Financial DetailsAs of Sep 29, 2019, cash and cash equivalents were $181 million compared with $182.7 million as of Dec 31, 2018.Long-term debt, including net of current portion, totaled $294.8 million as of Sep 29, 2019, up slightly from $294.2 million as of Dec 31, 2018.At the end of first nine months of 2019, cash generated from operating activities was $30.2 million compared with $15.4 million in the year-ago period.2019 GuidanceFor 2019, Kratos maintained its revenue expectation in the range of $720-740 million. The Zacks Consensus Estimate for full-year sales is pegged at $728.7 million lies below the mid-point of the company’s projected view.Kratos also reaffirmed its 2019 adjusted EBITDA guidance of $71 - $77 million and free cash flow guidance of $10 - $20 million,Zacks RankKratos currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Defense ReleasesLockheed Martin Corp. LMT reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 in the year-ago quarter.Textron Inc. TXT reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line surged 55.7% from the year-ago quarter.General Dynamics Corporation GD reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from $2.85 in the prior-year quarter.Just Released: Zacks’ 7 Best Stocks for TodayExperts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.These 7 were selected because of their superior potential for immediate breakout.See these time-sensitive tickers now >>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 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 Textron Inc. (TXT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research