Tech firm Mercury Systems Q1 profit beats expectations on strong demand

Mercury Systems

04/11/2025 21:10

Overview

Mercury Systems 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 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/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$225.20 mln
$207.27 mln (8 Analysts)
Q1 Adjusted EPS
Beat
$0.26
$0.08 (7 Analysts)
Q1 Net Income
-$12.50 mln
Q1 Adjusted EBITDA
Beat
$35.60 mln
$24.08 mln (8 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 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: ID:nGNX92tt9H

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(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.)