Leidos (NYSE:LDOS) Announces Quarterly Earnings Results

by · The Markets Daily

Leidos (NYSE:LDOS – Get Free Report) released its quarterly earnings data on Monday. The aerospace company reported $3.62 EPS for the quarter, beating the consensus estimate of $3.04 by $0.58, Zacks reports. The business had revenue of $4.63 billion for the quarter, compared to the consensus estimate of $4.71 billion. Leidos had a net margin of 7.80% and a return on equity of 30.81%. The business’s revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the prior year, the firm earned $3.05 EPS.

Leidos Price Performance

Shares of NYSE:LDOS traded down $7.63 during trading on Tuesday, reaching $136.53. 297,595 shares of the company’s stock traded hands, compared to its average volume of 1,282,075. The company has a quick ratio of 1.60, a current ratio of 1.63 and a debt-to-equity ratio of 1.13. Leidos has a fifty-two week low of $98.86 and a fifty-two week high of $205.77. The company has a 50-day simple moving average of $129.38 and a 200-day simple moving average of $141.34. The firm has a market cap of $17.13 billion, a PE ratio of 12.75, a P/E/G ratio of 1.55 and a beta of 0.55.

Leidos Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, December 15th. This is an increase from Leidos’s previous quarterly dividend of $0.43. Leidos’s dividend payout ratio is currently 16.04%.

Leidos announced that its board has approved a share buyback plan on Friday, July 31st that allows the company to buy back 20,000,000 shares. This buyback authorization allows the aerospace company to repurchase shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Key Stories Impacting Leidos

Here are the key news stories impacting Leidos this week:

  • Positive Sentiment: Quarterly earnings significantly exceeded expectations. Leidos reported non-GAAP diluted earnings of $3.62 per share, up 19% year over year and well above the $3.04 consensus estimate. Net income reached $413 million, while adjusted EBITDA was $644 million, representing a 13.9% margin. Leidos Delivers Strong Third Quarter and Enhances Full-Year Guidance
  • Positive Sentiment: Management enhanced its full-year guidance. The company highlighted robust operating performance and generated $523 million in operating cash flow and $476 million in non-GAAP free cash flow, supporting investor confidence in execution and capital flexibility. Leidos Tops Q3 Earnings Estimates
  • Positive Sentiment: Missile-production plans strengthen the defense-growth narrative. Leidos is mobilizing suppliers to scale production of thousands of low-cost, long-range cruise missiles, including its Low-Cost Containerized Missile and AGM-190A Havoc Spear. The initiative could support future revenue and backlog growth if production contracts materialize. Leidos Mobilizes Supply Chain to Scale Production of Thousands of U.S. Cruise Missiles
  • Positive Sentiment: The quarterly dividend was increased. Leidos raised its dividend 4.7% to $0.45 per share, or $1.80 annually, signaling confidence in recurring cash generation and returning more capital to shareholders.
  • Negative Sentiment: Revenue modestly missed analyst expectations. Quarterly revenue was approximately $4.6 billion, up 3.6% year over year but below the $4.71 billion consensus forecast. This shortfall may temper the otherwise strong earnings reaction. Leidos Quarterly Earnings Results
  • Negative Sentiment: Recent coverage also cited a lower consensus price target, creating a potential overhang despite the stronger quarterly results.

Insider Transactions at Leidos

In other Leidos news, Director Noel Geer sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the transaction, the director owned 34,274 shares in the company, valued at approximately $4,820,980.84. This represents a 22.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Gary May sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $140.85, for a total value of $140,850.00. Following the transaction, the director owned 10,204 shares in the company, valued at $1,437,233.40. This represents a 8.93% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.77% of the company’s stock.

Analyst Ratings Changes

Several research firms have commented on LDOS. BNP Paribas Exane upped their price target on shares of Leidos from $165.00 to $175.00 and gave the company an “outperform” rating in a report on Wednesday, August 5th. Wells Fargo & Company set a $165.00 price objective on Leidos in a report on Monday, August 17th. JPMorgan Chase & Co. cut Leidos from an “overweight” rating to a “neutral” rating and decreased their price objective for the company from $160.00 to $142.00 in a report on Thursday, October 8th. TD Cowen lowered their target price on Leidos from $135.00 to $130.00 and set a “hold” rating on the stock in a research note on Tuesday, October 6th. Finally, Wall Street Zen raised Leidos from a “hold” rating to a “buy” rating in a report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Leidos has an average rating of “Hold” and an average target price of $150.85.

Get Our Latest Analysis on LDOS

About Leidos

(Get Free Report)

Leidos Holdings, Inc (NYSE: LDOS) is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.

The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.

Featured Stories