Leidos Holdings' Quarterly Earnings Preview: What You Need to Know

Reston, Virginia-based Leidos Holdings, Inc. (LDOS) provides services and solutions in the defense, intelligence, engineering, civil, and health markets. With a market cap of $22.8 billion, the company provides scientific, engineering, systems integration, and technical services and solutions. The global science and technology leader is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Tuesday, Oct. 29. 

Ahead of the event, analysts expect LDOS to report a profit of $1.95 per share on a diluted basis, down 3.9% from $2.03 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect LDOS to report EPS of $8.95, up 22.6% from $7.30 in fiscal 2023. Its EPS is expected to rise 5.3% year over year to $9.42 in fiscal 2025. 

LDOS stock has outperformed the S&P 500’s ($SPX) 34.4% gains over the past 52 weeks, with shares up 76.7% during this period. Similarly, it outperformed the Technology Select Sector SPDR Fund’s (XLK) 35.6% gains over the same time frame.

LDOS' exceptional performance stems from its position as a top defense contractor in the U.S., benefiting from a steady influx of contracts for its defense products and a strong financial standing. The company's diverse range of cost-effective defense offerings, spanning from technology-enabled services to advanced defense systems, consistently attract orders and contribute to a robust backlog. Additionally, its solid financial foundation supports investments in research and development for future defense innovations, with increased global defense spending further bolstering demand for its products.

On Jul. 30, LDOS shares closed down more than 4% after reporting its Q2 results. Its adjusted EPS of $2.63 exceeded Wall Street expectations of $2.26. The company’s revenue was $4.1 billion, topping Wall Street forecasts of $4 billion. LDOS expects full-year adjusted EPS to be between $8.60 and $9, and expects revenue to be between $16.1 billion and $16.4 billion.

Analysts’ consensus opinion on LDOS stock is bullish, with a “Strong Buy” rating overall. Out of 13 analysts covering the stock, 11 advise a “Strong Buy” rating, and two give a “Hold.” LDOS’ average analyst price target is $176.18, indicating a potential upside of 5.1% from the current levels.

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.