Leidos Holdings Inc. Sees Stock Surge

RESTON, Va. – Leidos Holdings, Inc. (NYSE:LDOS) experienced a 4% increase in stock price after reporting third-quarter earnings that exceeded analyst expectations and raised its full-year guidance.

The defense and technology services provider reported adjusted earnings per share (EPS) of $2.93, significantly surpassing the analyst consensus of $2.01. Revenue for the quarter was $4.19 billion, beating estimates of $4.07 billion and marking a 7% increase YoY.

Leidos CEO Tom Bell credited the impressive performance to "continued improvement in operating performance across all segments," which contributed to "excellent revenue growth, record margins for net income and adjusted EBITDA, substantial earnings growth, strong cash flow, and robust bookings."

The company achieved an adjusted EBITDA margin of 14.2%, up from 11.5% in the same quarter last year. The net income for the quarter was $362 million, or $2.68 per diluted share, contrasting with a net loss in the year-ago period.

Looking ahead, Leidos has raised its full-year guidance, now projecting FY2024 EPS of $9.80-$10.00, up from the previous analyst consensus of $9.08. Full-year revenue is anticipated to be $16.35-16.45 billion, above the consensus estimate of $16.3 billion.

Bell expressed confidence in the company's prospects, stating, "With a healthy balance sheet, improving business development performance, and an emerging 'North Star' strategy, Leidos is well positioned to deliver robust and sustainable returns as we move forward."

The company reported strong bookings of $8.1 billion for the quarter, resulting in a book-to-bill ratio of 1.9. This increased Leidos's total backlog to $40.6 billion at the end of the quarter.

Additionally, Leidos announced a 5.3% increase in its quarterly dividend to $0.40 per share, payable on December 31, 2024, to stockholders of record as of December 16, 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.