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Will Segmental Sales Benefit Leidos' (LDOS) Q4 Earnings?
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Leidos Holdings, Inc. (LDOS - Free Report) is slated to report fourth-quarter and fiscal 2022 results on Feb 14 before market open.
Leidos Holdings has a four-quarter earnings surprise of 2.01%, on average. With all segments expected to report strong sales growth, the top line of the company is likely to have witnessed a robust sales increase in the fourth quarter of 2022.
Defense Solutions
Growth from favorable programs like NGEN and various other protection programs, coupled with strong volumes on certain programs, must have aided the revenues of the Defense Solutions segment in the fourth quarter. The Zacks Consensus Estimate for Defense Solutions’ fourth-quarter revenues is currently pegged at $2,129 million.
Civil
The NASA AEGIS program may have continued to positively contribute to this segment’s results. The anticipated improvement in security products and commercial energy businesses may have aided the revenues of the segment in the fourth quarter.
The Zacks Consensus Estimate for the Civil segment’s fourth-quarter revenues, pegged at $850 million, suggests an improvement of 6.3% from the year-ago quarter’s reported figure.
Health
Higher program volumes, along with recoveries related to stopping work orders on certain programs, may have benefited the segment’s revenues in the fourth quarter. However, the completion of certain contracts may have dampened the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Health’s fourth-quarter revenues is pegged at $635.1 million. This suggests an increase of 0.8% from the year-ago quarter’s reported figure.
With the anticipated improvement in sales across all its segments and a strong backlog, one may have a positive outlook about Leidos Holdings’ overall top line in the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter sales is pegged at $3.61 billion. This indicates an increase of 3.4% from the prior-year reported figure.
A strong top line is likely to have aided LDOS’ bottom line. Additionally, the acquisition of Cobham Aviation Services may have provided a boost to the margins of the company, thus benefiting its bottom line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.61 per share, indicating growth of 3.2% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Leidos Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Leidos Holdings has an Earnings ESP of +0.16% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is one defense player you may want to consider as it has the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for SPCE’s fourth-quarter sales indicates an improvement of 271.4% from the prior-year quarter’s reported figure.
Upcoming Releases
Embraer S.A. (ERJ - Free Report) boasts a long-term earnings growth rate of 17%. ERJ has a four-quarter average earnings surprise of 171.43%.
The Zacks Consensus Estimate for Embraer’s fourth-quarter sales indicates an increase of 55% from the prior-year reported figure.
Huntington Ingalls Industries, Inc. (HII - Free Report) is slated to report its fourth-quarter results on Feb 9, 2023. The Zacks Consensus Estimate for Huntington’s fourth-quarter sales is pegged at $2.69 billion, implying an improvement of 0.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for HII’s fourth-quarter sales is pegged at $3.14 per share, suggesting a growth rate of 5% from the prior-year quarter’s reported figure. The company has delivered a four-quarter average earnings surprise of 7.59%.
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Will Segmental Sales Benefit Leidos' (LDOS) Q4 Earnings?
Leidos Holdings, Inc. (LDOS - Free Report) is slated to report fourth-quarter and fiscal 2022 results on Feb 14 before market open.
Leidos Holdings has a four-quarter earnings surprise of 2.01%, on average. With all segments expected to report strong sales growth, the top line of the company is likely to have witnessed a robust sales increase in the fourth quarter of 2022.
Defense Solutions
Growth from favorable programs like NGEN and various other protection programs, coupled with strong volumes on certain programs, must have aided the revenues of the Defense Solutions segment in the fourth quarter. The Zacks Consensus Estimate for Defense Solutions’ fourth-quarter revenues is currently pegged at $2,129 million.
Civil
The NASA AEGIS program may have continued to positively contribute to this segment’s results. The anticipated improvement in security products and commercial energy businesses may have aided the revenues of the segment in the fourth quarter.
The Zacks Consensus Estimate for the Civil segment’s fourth-quarter revenues, pegged at $850 million, suggests an improvement of 6.3% from the year-ago quarter’s reported figure.
Health
Higher program volumes, along with recoveries related to stopping work orders on certain programs, may have benefited the segment’s revenues in the fourth quarter. However, the completion of certain contracts may have dampened the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Health’s fourth-quarter revenues is pegged at $635.1 million. This suggests an increase of 0.8% from the year-ago quarter’s reported figure.
Leidos Holdings, Inc. Price and EPS Surprise
Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote
Fourth-Quarter Estimates
With the anticipated improvement in sales across all its segments and a strong backlog, one may have a positive outlook about Leidos Holdings’ overall top line in the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter sales is pegged at $3.61 billion. This indicates an increase of 3.4% from the prior-year reported figure.
A strong top line is likely to have aided LDOS’ bottom line. Additionally, the acquisition of Cobham Aviation Services may have provided a boost to the margins of the company, thus benefiting its bottom line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.61 per share, indicating growth of 3.2% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Leidos Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Leidos Holdings has an Earnings ESP of +0.16% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
A Stock to Consider
Here is one defense player you may want to consider as it has the right combination of elements to post an earnings beat this season:
Virgin Galactic (SPCE - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SPCE’s fourth-quarter sales indicates an improvement of 271.4% from the prior-year quarter’s reported figure.
Upcoming Releases
Embraer S.A. (ERJ - Free Report) boasts a long-term earnings growth rate of 17%. ERJ has a four-quarter average earnings surprise of 171.43%.
The Zacks Consensus Estimate for Embraer’s fourth-quarter sales indicates an increase of 55% from the prior-year reported figure.
Huntington Ingalls Industries, Inc. (HII - Free Report) is slated to report its fourth-quarter results on Feb 9, 2023. The Zacks Consensus Estimate for Huntington’s fourth-quarter sales is pegged at $2.69 billion, implying an improvement of 0.5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for HII’s fourth-quarter sales is pegged at $3.14 per share, suggesting a growth rate of 5% from the prior-year quarter’s reported figure. The company has delivered a four-quarter average earnings surprise of 7.59%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.