Overview

* Mercury Systems ( MRCY ) fiscal Q1 rev grows 10.2% yr/yr, beating analyst expectations

* Adjusted EPS for fiscal Q1 beats consensus, improving significantly year-over-year

* Company announced $200 mln share repurchase program, reflecting confidence in future prospects

Outlook

* Mercury Systems ( MRCY ) did not provide specific future revenue or EPS guidance in the statement

Result Drivers

* ACCELERATED DELIVERIES - Co attributes strong Q1 results to accelerated deliveries on high-priority programs

* STREAMLINED OPERATIONS - Co cites margin expansion due to streamlined operating structure

* BACKLOG GROWTH - Record backlog of $1.4 bln, up 6.5% yr/yr, indicates strong demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $225.20 $207.27

Revenue mln mln (8

Analysts

)

Q1 Beat $0.26 $0.08 (7

Adjusted Analysts

EPS )

Q1 Net -$12.50

Income mln

Q1 Beat $35.60 $24.08

Adjusted mln mln (8

EBITDA Analysts

)

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 ( MRCY ) is $88.00, about 11.6% above its November 3 closing price of $77.78

* The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 56 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)