Overview
Leidos Q3 revenue grows 7% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beats consensus, rising 4% yr/yr
Company raises full-year earnings and margin guidance despite government shutdown
Outlook
Leidos raises FY25 non-GAAP EPS guidance to $11.45-$11.75
Company maintains FY25 revenue guidance at $17.00-$17.25 bln
Leidos expects FY25 adjusted EBITDA margin in high 13% range
Result Drivers
CUSTOMER DEMAND - Revenue growth driven by increased demand for national security and defense solutions
HEALTH SERVICES - Increased profitability in Health & Civil segment due to high volumes and timing of incentive awards
COST MANAGEMENT - High profitability maintained through cost management and award performance despite increased legal reserves
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $4.47 bln | $4.28 bln (13 Analysts) |
Q3 Adjusted EPS | Beat | $3.05 | $2.71 (12 Analysts) |
Q3 EPS | $2.82 | ||
Q3 Net Income | $369 mln | ||
Q3 NET BOOKINGS | $5.90 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Leidos Holdings Inc is $200.00, about 3.5% above its November 3 closing price of $193.05
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nPnb0d4fra
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)