Leidos Q3 Earnings Beat Expectations With Strong Demand In Defense And Health Services, Guidance Raised

Leidos Holdings, Inc. (NYSE:LDOS) on Tuesday reported third-quarter fiscal 2024 revenue growth of 7% year-over-year to $4.19 billion, beating the analyst consensus estimate of $4.07 billion. Demand across all customer segments, especially for managed health services, drove the growth. 

The defense, aviation, information technology, and biomedical research company's adjusted EPS was $2.93, up 44% year over year, beating the analyst consensus estimate of $2.02.

Adjusted net income was $396 million for the quarter, up 40% year-over-year.

Also Read: Leidos Wins $86M Contract to Enhance Geospatial Intelligence Systems for National Security

Adjusted EBITDA was $596 million, up 32% year over year. The margin of 14.2% increased from 11.5% a year ago. 

Net bookings totaled $8.1 billion for the quarter, representing a book-to-bill ratio of 1.9. As a result, the backlog at the end of the year was $40.6 billion, of which $9.1 billion was funded. 

Leidos held $1.19 billion in cash and equivalents as of Sept. 27.

Outlook: Leidos expects fiscal 2024 revenue of $16.35 billion–$16.45 billion (prior $16.1 billion–$16.4 billion). The analyst consensus stands at $16.3 billion.

The company expects its fiscal 2024 adjusted EPS of $9.80–$10.00 (prior $8.60–$9.00) versus the $9.08 consensus.

Leidos Holdings stock gained over 57% year-to-date.

Price Action: LDOS stock is up 8.7% at $184.50 at last check on Tuesday.

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