Why Leidos (LDOS) Shares Are Plunging Today - Leidos Holdings (NYSE:LDOS)

Leidos Holdings, Inc LDOS shares are plunging Tuesday after mixed first-quarter results. The company's bottom-line missed estimates reflecting reductions in certain disability examinations due to additional competition and increased security product business expenses.
LDOS reported first-quarter FY23 revenue growth of 6% year-over-year to $3.699 billion, beating the consensus of $3.650 billion. Revenue grew 5.1% organically.
Revenues grew year-over-year in all segments, led by broad-based strength across the Civil and Health segments.
Defense Solutions' revenue rose 3% year-over-year to $2.11 billion. Civil revenue grew 10% year-over-year to $877 million. Health revenue expanded 9% year-over-year to $710 million.
Net bookings totaled $3.0 billion, representing a book-to-bill ratio of 0.8. As a result, the backlog was $35.1 billion.
Adjusted EBITDA margin decreased by 80 bps to 9.4%.
Non-GAAP EPS of $1.47 missed the consensus of $1.58.
Leidos held $379 million in cash and equivalents and used $(137) million in free cash flow.
On April 28, 2023, LDOS Board declared a cash dividend of $0.36 per share to be paid on June 30, 2023, to stockholders of record on June 15, 2023.
FY23 Outlook: Leidos reiterates revenue of $14.7 billion-$15.1 billion (consensus $15 billion) and non-GAAP EPS of $6.40-$6.80 (consensus $6.70).
Also Read: Leidos Picks New CEO; Roger Krone To Retire As Chairman & CEO By May 2023
Price Action: LDOS shares traded lower by 15% at $80.15 on the last check Tuesday.