Karman (NYSE:KRMN) Shares Gap Up on Strong Earnings

Key Points

• Karman beat quarterly earnings expectations: EPS was $0.19 versus the $0.16 consensus, while revenue of $201.62 million rose 65.6% year over year. Shares jumped from a previous close of $32.09 to an opening price of $35.90.
• Business outlook remains robust: Karman expects $755 million–$760 million in 2026 revenue and reported a $1.7 billion backlog.
• Analyst sentiment is broadly positive: The stock carries a “Moderate Buy” consensus rating and a $73 average price target, though individual targets vary widely.

Shares of Karman Holdings Inc. (NYSE:KRMN - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $32.09, but opened at $35.90. Karman shares last traded at $39.5390, with a volume of 797,702 shares traded.

The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.03. The firm had revenue of $201.62 million for the quarter. Karman had a return on equity of 15.54% and a net margin of 6.31%. Karman's quarterly revenue was up 65.6% on a year-over-year basis. During the same period last year, the firm posted $0.10 earnings per share.

Key Headlines Impacting Karman

Here are the key news stories impacting Karman this week:

• Positive Sentiment: Q3 beat and strong growth: Karman earned $0.19 per share, above the $0.16 consensus and up from $0.10 a year earlier. Revenue reached $201.62 million, a 65.6% year-over-year increase. Karman Q3 earnings and revenues surpass estimates
• Positive Sentiment: 2026 outlook and backlog: The company expects $755 million–$760 million in 2026 revenue and reported a $1.7 billion backlog, supporting visibility into future business. Karman revenue outlook and backlog
• Positive Sentiment: Analyst support: Piper Sandler reaffirmed its Overweight rating and raised its price target to $60 from $59, implying substantial upside from the cited $32.40 price. Piper Sandler rating and price target update
• Neutral Sentiment: Trading context: The supplied snapshot shows shares well below their 50- and 200-day averages, while the stock’s high reported P/E may be a concern for investors. The articles provided do not identify a specific negative catalyst for the recent weakness.

Analysts Set New Price Targets

Several brokerages recently issued reports on KRMN. UBS Group set a $40.00 price target on shares of Karman in a research report on Thursday, October 22nd. Needham & Company LLC lowered their price objective on shares of Karman from $80.00 to $50.00 and set a "buy" rating for the company in a report on Friday. Barclays started coverage on Karman in a research report on Friday, October 9th. They set an "overweight" rating and a $79.00 price objective on the stock. Truist Financial reduced their target price on Karman from $118.00 to $85.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. Finally, Guggenheim initiated coverage on Karman in a research report on Monday, September 14th. They issued a "buy" rating and a $63.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $73.00.

Insider Buying and Selling

In other Karman news, Director David Stinnett bought 27,000 shares of the company's stock in a transaction dated Wednesday, September 16th. The shares were purchased at an average price of $37.32 per share, for a total transaction of $1,007,640.00. Following the acquisition, the director owned 3,530,395 shares in the company, valued at approximately $131,754,341.40. This represents a 0.77% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 5.77% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Karman during the third quarter valued at approximately $29,000. Fifth Third Bancorp increased its position in shares of Karman by 34.8% during the third quarter. Fifth Third Bancorp now owns 167,935 shares of the company's stock valued at $5,444,000 after acquiring an additional 43,387 shares in the last quarter. King Luther Capital Management Corp increased its position in shares of Karman by 17.4% during the third quarter. King Luther Capital Management Corp now owns 119,121 shares of the company's stock valued at $3,862,000 after acquiring an additional 17,697 shares in the last quarter. Maryland State Retirement & Pension System purchased a new position in Karman in the 3rd quarter worth approximately $1,006,000. Finally, Lido Advisors LLC raised its holdings in Karman by 104.2% in the 3rd quarter. Lido Advisors LLC now owns 19,130 shares of the company's stock worth $620,000 after acquiring an additional 473,007 shares during the last quarter.

Karman Stock Performance

The company has a market capitalization of $5.37 billion, a PE ratio of 139.64 and a beta of 0.45. The company has a current ratio of 3.56, a quick ratio of 3.40 and a debt-to-equity ratio of 2.01. The business's fifty day moving average is $35.97 and its two-hundred day moving average is $62.81.

Karman Company Profile

Karman Holdings Corp., doing business as Karman Space & Defense, is an aerospace and defense company that develops and manufactures mission-critical components, assemblies and structures. Its products are used in space-launch vehicles, missiles, hypersonic systems and other defense applications where performance, reliability and precision are essential.

The company's capabilities include the production of composite and metallic structures, propulsion-related components, precision-machined parts and other highly engineered hardware.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.