We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Leidos Holdings (LDOS) Beats on Q3 Earnings, Raises '17 View
Read MoreHide Full Article
Leidos Holdings, Inc. (LDOS - Free Report) reported third-quarter 2017 adjusted earnings of 95 cents per share, beating the Zacks Consensus Estimate of 80 cents by 18.8%. The reported number, however, declined 24% from the year-ago figure of $1.25.
Total Revenue
Leidos Holdings posted total revenue of $2,503 million in the quarter, which missed the Zacks Consensus Estimate of $2,505 million by 0.1%. However, the reported figure improved 34% year over year.
Backlog
At the end of the third quarter, the company’s backlog of signed business orders was $17.7 billion, of which $5.6 billion was funded. Total backlog at the end of the previous quarter was $17.1 billion, of which $5 billion was funded.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Total cost of revenues in the reported quarter surged 34.3% to $2,189 million. Operating income was $151 million compared with $101 million in the year-ago quarter.
Interest expenses were $36 million, up from $28 million in third-quarter 2016.
Segment Performance
Defense Solutions: Net sales at the segment improved 19% to $1,201 million from the prior-year figure of $1,009 million. However, operating income declined to $80 million from the year-ago tally of $93 million, with operating margin contracting 250 basis points (bps) to 6.7%.
Health: The segment recorded net sales of $464 million in the reported quarter, up 54.7%. While operating income increased 125% to $63 million, operating margin expanded 430 bps to 6%.
Civil: Net sales at the segment were $838 million, up 49.9%. While operating income increased 31.6% to $50 million, operating margin contracted 80 bps to 6%.
Financials
Cash and cash equivalents as of Sep 30 were $287 million compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the third quarter was $268 million, compared with $273 million a year ago.
Guidance
For 2017, the company raised its earnings expectation in the range of $3.60 to $3.75 per share from $3.45 to $3.60, projected earlier.
However, revenues are still expected to be in between $10.1 billion and $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization margin is anticipated in the range of 10.2−10.4%, up from the prior range of 9.8−10.2%. Also, Leidos Holdings raised its projection of cash flows provided by operating activities from continuing operations to be $490 million or more, up from $475 million, guided earlier.
Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. This company’s bottom line also declined from the year-ago period’s figure by 10.2%.
Northrop Grumman Corp. (NOC - Free Report) reported third-quarter 2017 earnings of $3.68 per share, beating the Zacks Consensus Estimate of $2.92 by 26%. Reported earnings were also up 9.9% from $3.35 in the year-ago quarter.
The Boeing Company (BA - Free Report) reported adjusted earnings of $2.72 per share for third-quarter 2017, surpassing the Zacks Consensus Estimate of $2.65 by 2.6%. The bottom line, however, declined 22.5% from $3.51 in the year-ago quarter.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Leidos Holdings (LDOS) Beats on Q3 Earnings, Raises '17 View
Leidos Holdings, Inc. (LDOS - Free Report) reported third-quarter 2017 adjusted earnings of 95 cents per share, beating the Zacks Consensus Estimate of 80 cents by 18.8%. The reported number, however, declined 24% from the year-ago figure of $1.25.
Total Revenue
Leidos Holdings posted total revenue of $2,503 million in the quarter, which missed the Zacks Consensus Estimate of $2,505 million by 0.1%. However, the reported figure improved 34% year over year.
Backlog
At the end of the third quarter, the company’s backlog of signed business orders was $17.7 billion, of which $5.6 billion was funded. Total backlog at the end of the previous quarter was $17.1 billion, of which $5 billion was funded.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings, Inc. Price, Consensus and EPS Surprise | Leidos Holdings, Inc. Quote
Operational Statistics
Total cost of revenues in the reported quarter surged 34.3% to $2,189 million. Operating income was $151 million compared with $101 million in the year-ago quarter.
Interest expenses were $36 million, up from $28 million in third-quarter 2016.
Segment Performance
Defense Solutions: Net sales at the segment improved 19% to $1,201 million from the prior-year figure of $1,009 million. However, operating income declined to $80 million from the year-ago tally of $93 million, with operating margin contracting 250 basis points (bps) to 6.7%.
Health: The segment recorded net sales of $464 million in the reported quarter, up 54.7%. While operating income increased 125% to $63 million, operating margin expanded 430 bps to 6%.
Civil: Net sales at the segment were $838 million, up 49.9%. While operating income increased 31.6% to $50 million, operating margin contracted 80 bps to 6%.
Financials
Cash and cash equivalents as of Sep 30 were $287 million compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the third quarter was $268 million, compared with $273 million a year ago.
Guidance
For 2017, the company raised its earnings expectation in the range of $3.60 to $3.75 per share from $3.45 to $3.60, projected earlier.
However, revenues are still expected to be in between $10.1 billion and $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization margin is anticipated in the range of 10.2−10.4%, up from the prior range of 9.8−10.2%. Also, Leidos Holdings raised its projection of cash flows provided by operating activities from continuing operations to be $490 million or more, up from $475 million, guided earlier.
Peer Releases
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. This company’s bottom line also declined from the year-ago period’s figure by 10.2%.
Northrop Grumman Corp. (NOC - Free Report) reported third-quarter 2017 earnings of $3.68 per share, beating the Zacks Consensus Estimate of $2.92 by 26%. Reported earnings were also up 9.9% from $3.35 in the year-ago quarter.
The Boeing Company (BA - Free Report) reported adjusted earnings of $2.72 per share for third-quarter 2017, surpassing the Zacks Consensus Estimate of $2.65 by 2.6%. The bottom line, however, declined 22.5% from $3.51 in the year-ago quarter.
Zacks Rank
Leidos Holdings holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>