Karman rises 42.1% after stronger-than-expected quarterly results and raised guidance

What happened

Karman (KRMN) rose 42.1% on November 6, 2026, because stronger-than-expected quarterly results and a bump to full-year sales guidance prompted a sharp investor response. The company reported record third-quarter fiscal 2026 results, with quarterly EPS of $0.19 compared with $0.10 a year earlier and above the Zacks consensus of $0.16, and it raised its full-year 2026 sales guidance, according to Business Wire and Benzinga. Trading volume was 3.1 times its 20-day average, underscoring how the earnings announcement drove investor interest that day.

How big was the move

The stock closed at $45.61, having risen 42.1% on the session, a jump that was 6.5 times a typical daily move for this stock. That performance was 41.1 percentage points better than the Industrials sector median, which rose 1.0% on the day. Over the last five sessions the stock rose 14.2% while the S&P 500 fell 2.7%; on the day the S&P 500 rose 0.3%. Karman’s market value was $5.29 billion.

The technical picture

The stock traded 26.5% above its 20-day moving average and 27.1% above its 50-day moving average, while it remained 26.5% below its 200-day moving average. The 50-day average sits below the 200-day average, a sign of a weak longer-term trend. Its Relative Strength Index (14 days) was 64, a neutral reading between 30 and 70. Karman was 61.5% below its 52-week high; over one month the stock rose 43.9% but fell 26.6% over three months and 42.8% over one year. Volatility measured 103% annualized over 60 days, the highest reading of the past five years, and the stock’s beta of 1.56 indicates it tends to move more than the market.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $669.4 million, which grew 56.3% from a year earlier and followed revenue growth of 50.2% one quarter earlier. Diluted earnings per share for that period were $0.39, and earnings per share growth from a year earlier rose 352.2%. Gross margin was 42.1%, up from 40.0% a year earlier, and operating margin was 16.3%, up from 15.5% a year earlier. Free-cash-flow margin was 1.1% and return on invested capital was 5.1%; the balance sheet showed net debt of 0.7 times EBITDA and share count over one year increased by 0.2%.

Valuation remains rich by several measures. The stock traded at 117.8 times trailing earnings and 78.0 times expected forward earnings, with a free-cash-flow yield of 0.1%. Versus its own history, the current price-to-earnings reading is lower than 89% of its own readings over the past five years, where the five-year median is 310.7 times earnings.

Earnings and analyst expectations

Karman’s last report, on November 5, 2026, showed earnings per share of $0.19 against $0.15 expected, 26.2% above estimates, and the company boosted full-year 2026 sales guidance. The company has recorded two consecutive quarters beating estimates and its average surprise over the last four reports is 5.9% above estimates. Historically the typical two-day reaction after recent reports was that the stock fell 0.3%. The next report is scheduled for March 24, 2027.

Analysts’ consensus price target is $75.60, which is 65.8% above the closing price. Nine analysts provide ratings and 89% of them rate the stock Buy or Strong Buy; the consensus rating is Buy. PromtFinance scores for Karman within the Industrials sector show Growth at 99 (Exceptional) and Revisions at 79 (Positive), while Value is 24 (Very weak), Momentum is 18 (Very weak) and Stability is 22 (Very weak), with Quality at 48 (Neutral).

What to watch

• Next report: March 24, 2027
• Last report: November 5, 2026: EPS of $0.19 against $0.15 expected, 26.2% above estimates
• Trading volume on November 6, 2026: 3.1 times its 20-day average
• Price to trailing earnings: 117.8 times trailing earnings
• Volatility: 103% annualized over 60 days, the highest reading of the past five years