Mercury Systems shares surge 20% after Baird upgrade on turnaround progress
Mercury Systems Inc. shares rose 20% after Baird upgraded the company to "Outperform." This change reflects confidence in the company's turnaround, driven by improved financial results and reduced risks. In the second quarter, Mercury reported a 13% revenue increase to $223.1 million, surpassing expectations. Adjusted earnings were $0.07 per share, compared to a predicted loss, and free cash flow reached a record $81.9 million. Baird raised its price target for Mercury to $58 and increased its fiscal 2025 earnings estimate to $0.30. Despite a 26% drop in bookings, management now expects mid-single-digit revenue growth for fiscal 2025, an improvement from previous forecasts.