Mercury Systems Inc. shares tumbled 12.9% to $91.50 in after-hours trading following the release of its fiscal fourth-quarter results, which included an adjusted earnings per share miss despite revenue beating expectations.
The Andover, Massachusetts-based aerospace and defense electronics company reported adjusted EPS of $0.37, below the $0.39 consensus estimate from analysts. Revenue totaled $289.78 million, exceeding the $265.39 million forecast. Bookings reached a record $660 million, with a book-to-bill ratio of 2.28, while backlog surpassed $1.9 billion, up 38.4% year-over-year.
The stock had surged more than 11% in pre-market trading the prior session, opening at $110.12 and reaching an intraday high of $113.87. Piper Sandler initiated coverage with an Overweight rating and a $126 price target ahead of the earnings release.
Eight negative EPS revisions were recorded in the 90 days leading up to the report, according to available data. The broader market showed modest declines during the regular session, with the NASDAQ falling 1.7%, the S&P 500 down 0.7%, and the Dow Jones edging lower by 0.2%.
Mercury Systems’ peers, including Curtiss-Wright, Leonardo DRS, and Teledyne Technologies, were not immune to the sector’s volatility, reflecting broader market conditions in aerospace and defense electronics.
