Leidos Holdings Expected to Report Strong Q4 Earnings

Leidos Holdings is poised to report strong Q4 results, with anticipated EPS of $2.18, a 9.6% increase from last year. Analysts view the stock positively, suggesting potential growth from robust demand and successful project execution.

Date: 18-01-2025

AI Rating: 7

Earnings Per Share (EPS)
Leidos has shown impressive growth in its earnings per share. The company is expected to report an EPS of $2.18 for Q4, reflecting a rise of 9.6% compared to the previous year's $1.99. Additionally, an adjusted EPS of $2.93 in the most recent quarter exceeded consensus estimates by a significant 49.5%. For the full year, projections suggest an EPS of $10.03, representing a 37.4% increase from fiscal 2023.

Revenue Growth
Leidos reported $4.19 billion in revenue for the last quarter, marking a 6.9% year-over-year increase and surpassing consensus estimates by 3%. The company remains optimistic, having raised its full-year revenue guidance to $16.4 billion at the midpoint, indicating continued growth in demand.

Profit Margins
The company has experienced notable improvements in profit margins. The gross margin increased to 18.2%, operating margin reached 12.3%, and the EBITDA margin expanded to 14.2%. These improvements suggest stronger financial health and operational efficiencies, which are likely to influence stock prices positively.

Analyst Sentiment
Analysts maintain a cautiously optimistic consensus on Leidos stock, with a “Moderate Buy” rating. Out of 14 analysts, nine recommend a “Strong Buy”, and five suggest a “Hold”. The average price target of $183.64 indicates an upside potential of 18.4% from current levels, likely creating positive sentiment for investors.

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