Leidos Reports Strong Q3 Earnings, Raises Full-Year Outlook

Leidos shares surged 9.6% following a strong third-quarter earnings report that showcased significant revenue growth and raised sales and earnings guidance for the year, signaling bullish investor sentiment and confidence in future performance.

Date: 29-10-2024

AI Rating: 8

Earnings Per Share (EPS) Analysis:

Leidos reported a remarkable 44% year-over-year increase in non-GAAP adjusted earnings per share, with the latest figure reaching $2.93. This performance significantly surpassed the average analyst estimate of $2.02 per share, indicating strong profitability and operational efficiency.

Revenue Growth:

The company achieved a year-over-year revenue growth of 7%, reaching $4.2 billion in the third quarter. This growth comfortably exceeded the average analyst estimate of approximately $4.07 billion, thus demonstrating strong sales performance.

Full-Year Guidance:

Management has elevated its expectations for the full year, with a projected revenue target revised to between $16.35 billion and $16.45 billion, up from the previous range of $16.1 billion to $16.4 billion. This is a positive sign indicating strong future performance.

Furthermore, the expected adjusted earnings per share for the full year has been revised to a range of $9.80 to $10, considerably higher than the previous guidance of $8.60 to $9. This indicates robust earnings growth and confidence in continued profitability.

Bookings and Contracts:

Leidos recorded approximately $8.1 billion in bookings, achieving a bookings-to-billing ratio of 1.9. This suggests that the company is securing contracts that will contribute to future revenue growth. Major new defense contracts acquired in Q3 contribute positively to the outlook on earnings and sales potential.

Stocks: LDOS