Leidos Holdings, Inc.'s (LDOS) third-quarter 2024 adjusted earnings of $2.93 per share beat the Zacks Consensus Estimate of $1.96 by 49.5%. The bottom line also increased 44.3% from $2.03 registered in the prior-year quarter. The year-over-year upside was driven by increased volumes on managed health services programs and improved program execution and cost control across the company. LDOS reported GAAP earnings of $2.68 per share, implying a significant improvement from the prior-year loss of $2.91 per sha ...

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $4.19 billion, up 7% year-over-year [26] - Adjusted EBITDA was $596 million, a 32% increase year-over-year, with an adjusted EBITDA margin of 14.2%, marking a new high for the company [26][27] - Adjusted diluted EPS grew by 44% to $2.93, with non-GAAP net income at $396 million [27] - Free cash flow conversion was 159%, with $656 million generated from operating activities [34] - The company repurchased $200 million in shares, completing $450 million of its $500 million planned share repurchases for the year [7][34] Business Line Data and Key Metrics Changes - National Security and Digital revenues increased by 1% year-over-year, with non-GAAP operating income margin rising to 10.5% [29] - Health & Civil revenues grew by 16% year-over-year, with non-GAAP operating income margin increasing to 24.2% [30] - Commercial & International revenues rose by 5%, with non-GAAP operating margins at 8.8% [31] - Defense Systems revenues increased by 13% year-over-year, with non-GAAP operating margins up 280 basis points to 10.2% [32] Market Data and Key Metrics Changes - The company ended Q3 with a total backlog of $40.6 billion, including $9.1 billion of funded backlog [18] - Net bookings for the quarter were $8.1 billion, resulting in a book-to-bill ratio of over 1.9x [18] Company Strategy and Development Direction - The company is focusing on a new "North Star" growth strategy, with plans to share more details at the upcoming Investors Day in March 2025 [8][24] - Investments are being made in AI, virtual health, and other technologies to enhance service delivery and operational efficiency [12][24] - The company aims to maintain a strong performance in Health & Civil, viewing it as a core growth engine moving forward [52][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing financial performance of the Health & Civil segment, particularly due to increased funding from the VA [15][51] - The company raised its 2024 revenue guidance to a range of $16.35 billion to $16.45 billion, reflecting positive momentum across all segments [35][36] - Management anticipates a pivot year in 2025, with lower single-digit revenue growth expected, but remains optimistic about long-term growth potential [39][62] Other Important Information - The company announced a quarterly dividend increase of 5.3% to $0.40 per share [8] - The company is managing corporate costs effectively, with expected annualized savings of $25 million to $30 million from real estate footprint reductions [28] Q&A Session Summary Question: Insights on new takeaways and full-spectrum cyber - Management highlighted excitement about the National Security and Digital segment, emphasizing a strong history of winning significant programs [41][42] Question: Update on Health & Civil segment and VA funding - Management confirmed a strong performance in Health & Civil, with clarity on future contracts and a focus on innovation [49][52][55] Question: Update on BuckEye program and unclassified data collection - Management stated that BuckEye remains a strong business with fully utilized assets and plans for future growth [57][58] Question: Visibility on VBA work and recompete timing - Management provided clarity on the current contract and expected new awards, indicating confidence in maintaining high margins [84][87] Question: Factors affecting national security and digital growth - Management noted budget shifts and personnel challenges but remains optimistic about future growth in the segment [89][91] Question: Guidance for Q4 and implications for 2025 - Management indicated a modest step down in Q4 revenue but expects strong performance to continue into 2025 [93][95]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33072 Leidos Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 20-3562868 (State or other juris ...

Leidos (LDOS) reported $4.19 billion in revenue for the quarter ended September 2024, representing a yearover-year increase of 6.9%. EPS of $2.93 for the same period compares to $2.03 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $4.04 billion, representing a surprise of +3.59%. The company delivered an EPS surprise of +49.49%, with the consensus EPS estimate being $1.96. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stre ...

Leidos (LDOS) came out with quarterly earnings of $2.93 per share, beating the Zacks Consensus Estimate of $1.96 per share. This compares to earnings of $2.03 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 49.49%. A quarter ago, it was expected that this security and engineering company would post earnings of $2.26 per share when it actually produced earnings of $2.63, delivering a surprise of 16.37%. Over the last four quart ...

EXHIBIT 99.1 Three Months Ended Leidos Reports Strong Third Quarter 2024 Results and Raises Full-Year Guidance • Revenues of $4.2 billion, up 7% year-over-year • Net income of $362 million or $2.68 per diluted share • Adjusted EBITDA (non-GAAP) of $596 million (14.2% margin) • Non-GAAP Diluted Earnings per Share of $2.93, up 44% year-over-year • Cash Flows from Operations of $656 million; Free Cash Flow (non-GAAP) of $633 million • Net Bookings of $8.1 billion (book-to-bill ratio of 1.9 for the quarter and ...

Leidos Holdings, Inc. (LDOS) recently announced that its board of directors has approved a 5.3% increase in its quarterly dividend rate. The revised quarterly dividend will be 40 cents per share, payable on Dec. 31, 2024, to shareholders of record at the close of the business on Dec. 16, 2024. Following the recent hike, Leidos will now pay an annual dividend of $1.60 per share. This represents an annual dividend yield of 0.95% based on its share price worth $168.71 as of Oct. 25, 2024. Can LDOS Sustain Divi ...

For Immediate Releases Chicago, IL – October 28, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Parker-Hannifin Corp. (PH) , Curtiss-Wright Corp. (CW) , Ingersoll Rand Inc. (IR) , Leidos Holdings Inc. (LDOS) and Mastercard Inc. (MA) . Here are highlights from Monday's Analyst Blog: Buy 5 Giant "Old Economy" Stock ...

RESTON, Va., Oct. 24, 2024 /PRNewswire/ -- Leidos (NYSE:LDOS) announced today it has received a success memorandum from the Defense Innovation Unit (DIU) for the completion of key milestones in its Electric Vehicle Charging as a Service (EV CaaS) prototype for the Department of the Air Force (DAF). This milestone establishes Leidos as the sole vendor authorized by the DIU to provide a FedRAMP-accredited budget-neutral EV CaaS solution for the Department of Defense (DOD) and the U.S. government. Leidos E ...

Wall Street has been on a solid run this year, driven by strong earnings, AI craze and rate-cut optimism. However, escalation in Middle East tensions, presidential election uncertainty and global slowdown concerns continued to weigh on it. In such a scenario, dividend investing seems the best choice as it offers consistent and safe income.Though the strategy does not offer dramatic price appreciation, it is a major source of consistent income for investors in any market. In particular, focusing on the growt ...