A month has gone by since the last earnings report for Leidos (LDOS) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Leidos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Leidos Holdings Q4 Earnings Top, Revenues Rise Y/YLeidos Hold ...

Leidos Holdings, Inc. (LDOS) recently clinched a contract from Kessel Run, a division within the Air Force Life Cycle Management Center. The contract is valued at $158 million, on exercising all options.Per the terms of the agreement, Leidos will develop and expand the Air Force's Command and Control Incident Management Emergency Response Application (C2IMERA) to include all Air Force installations, associated forward operating locations, and contingency locations for command and control and emergency manag ...

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RESTON, Va., March 6, 2024 /PRNewswire/ -- Leidos (NYSE: LDOS), a FORTUNE® 500 innovation company, today announced it has entered into a multi-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). The agreement will leverage each company's unique strengths to accelerate innovation for new and existing customers in both the public sector and select commercial markets.  "We're excited to build on our existing work with AWS and create innovative solutions for our customers," said Steve H ...

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Investors interested in Aerospace - Defense stocks are likely familiar with Leidos (LDOS) and Northrop Grumman (NOC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earni ...

Financial Data and Key Metrics Changes - For the full year, revenue growth was 7%, non-GAAP diluted EPS growth was 11%, and operating cash flow growth was 17% [60][61][75] - In Q4, revenues reached $3.98 billion, with an adjusted EBITDA margin of 11.4% and non-GAAP diluted EPS of $1.99, reflecting a 9% year-over-year increase [111][112] Business Line Data and Key Metrics Changes - Health segment revenues increased by 17% year-over-year, surpassing $3 billion, driven by strong program execution and increased volumes [88][130] - Civil revenues grew by 2% compared to the prior year quarter, primarily due to infrastructure spending by the FAA [88] - Defense Solutions revenues rose by 7%, supported by digital modernization and hypersonics programs [113] Market Data and Key Metrics Changes - The company anticipates a 3% to 4% increase in Defense budgets over time, indicating a stable outlook for defense spending [101] - The Health and Civil segment generated $4.2 billion in revenues, up 7% year-over-year, with a non-GAAP operating income margin of 14.5% [96] Company Strategy and Development Direction - The company is focusing on business capture and enhancing its employee value proposition to attract top talent [63][65] - A new branding campaign, "Making Smart Smarter," aims to improve brand recognition and highlight the company's unique capabilities [80][82] - The company is committed to long-term margin expansion and expects to exceed previous financial commitments [69][118] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate funding uncertainties and maintain strong customer demand [127][190] - The company is preparing for potential growth in the Health segment, particularly in disability examinations, while remaining cautious about overall revenue growth due to budget uncertainties [130][190] Other Important Information - The company repurchased over $200 million worth of shares in Q4 2023 and paid $51 million in dividends, maintaining a strong balance sheet with $777 million in cash [61][91] - The company expects to guide non-GAAP diluted EPS between $7.50 and $7.90 for 2024, reflecting a conservative outlook amid budget uncertainties [93][117] Q&A Session Summary Question: What are the assumptions in the outlook related to the DOD budget? - Management indicated that the 2024 guidance is conservative due to funding uncertainties on Capitol Hill, not assuming growth in the Defense budget this year [127] Question: Can you elaborate on the Health segment's performance? - The Health segment has shown significant outperformance, with expectations for continued growth driven by strong program execution and increased volumes [130] Question: What are the margin expansion opportunities in the National Security segment? - Management highlighted the potential for margin expansion in the National Security and Digital segment, particularly through digital modernization efforts [135] Question: How does the company view the hypersonics market? - Management expressed optimism about the hypersonics market, noting strong customer demand and the company's positioning to capitalize on this growth [138][160] Question: What is the company's stance on M&A in 2024? - M&A is not a priority for 2024, with a focus on other cash deployments [175] Question: How is the Civil margin expected to trend in 2024? - Management indicated that the Civil margin is expected to stabilize, with a focus on improving profitability through better program execution [177]

Leidos Holdings, Inc.’s (LDOS) fourth-quarter 2023 adjusted earnings of $1.99 per share beat the Zacks Consensus Estimate of $1.73 by 15%. The bottom line also increased 8.7% from $1.83 registered in the prior-year quarter.The year-over-year upside was driven by an improved program execution and reduced indirect spending across the company as well as increased volumes and higher incentive awards in the medical examination business.The company reported GAAP earnings of $1.66 per share, up from the prior-year ...

Leidos (LDOS) reported $3.98 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 7.7%. EPS of $1.99 for the same period compares to $1.83 a year ago.The reported revenue represents a surprise of +4.99% over the Zacks Consensus Estimate of $3.79 billion. With the consensus EPS estimate being $1.73, the EPS surprise was +15.03%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...