What You Need To Know Ahead of Leidos Holdings’ Earnings Release

Company Overview - Leidos Holdings, Inc. (LDOS) is a technology and defense contractor providing scientific, engineering, IT, and systems integration services to government and commercial clients globally, with a focus on defense, intelligence, civil, and health markets. The company is headquartered in Reston, Virginia, and has a market capitalization of approximately $25 billion [1]. Earnings Expectations - The company is set to announce its fiscal fourth-quarter earnings for 2025 on February 17, with analysts predicting a profit of $2.54 per share on a diluted basis, reflecting a 7.2% increase from $2.37 per share in the same quarter last year. Leidos has consistently exceeded Wall Street's EPS estimates in the last four quarters [2]. - For the full fiscal year, analysts anticipate an EPS of $11.74, which is a 15% increase from $10.21 in fiscal 2024, and a further rise to $12.27 in fiscal 2026, representing a 4.5% year-over-year growth [3]. Stock Performance - Over the past 52 weeks, LDOS shares have increased by 25.5%, outperforming the S&P 500 Index's 16.9% gains but slightly underperforming the State Street Technology Select Sector SPDR ETF's 26.4% gains during the same period [4]. Operational Performance - Leidos has reported a record revenue of $4.5 billion for the third quarter of fiscal year 2025, marking a 7% year-over-year increase, and ended the quarter with a total backlog of approximately $47.7 billion. This strong operational performance is attributed to robust revenue growth and an increasing backlog from federal contracts [5][6]. Analyst Ratings - The consensus opinion among analysts on LDOS is generally positive, with a "Moderate Buy" rating overall. Out of 16 analysts, eight recommend a "Strong Buy," one suggests a "Moderate Buy," and seven advise a "Hold." The average analyst price target is $218.78, indicating a potential upside of 12.4% from current levels [7].