Leidos Holdings, Inc. (LDOS - Free Report) posted first-quarter 2017 adjusted earnings of 88 cents per share, beating the Zacks Consensus Estimate of 78 cents by 12.8%. Reported earnings also increased 22.2% from the year-ago figure of 72 cents.
Total Revenue
Leidos Holdings reported total revenue of $2,580 million in the first quarter, which surpassed the Zacks Consensus Estimate of $2,548.5 million by 1.2%. Reported revenues also improved 96.7% year over year.
Backlog
At the end of the first quarter, the company’s backlog of signed business orders was $16.9 billion, of which $4.9 billion was funded. Total backlog at the end of 2016 stood at $17.7 billion, of which $6 billion was funded.
Operational Statistics
Total cost of revenues in the quarter surged 96.7% to $2,270 million. Operating income was $141 million, compared with $89 million in the year-ago quarter.
Interest expenses were $34 million, up from $25 million in the year-ago quarter.
Segment Performance
Defense Solutions: Net sales at the segment improved 65.9% to $1,294 million from the prior-year figure of $780 million. Also, operating income improved to $79 million from the year-ago tally of $71 million, with operating margin contracting 300 basis points (“bps”) to 6.1%.
Health: The segment recorded net sales of $443 million in the reported quarter, up 159.1%. Operating income increased 193.8% to $47 million, while operating margin expanded 120 bps to 10.6%.
Civil: Net sales at the segment were $842 million, up 133.2%. Operating income grew 145.5% to $54 million, while operating margin was 6.4%.
Financials
Cash and cash equivalents as of Mar 31, 2017 were $206 million, compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the first quarter was $88 million, compared with outflow of $14 million a year ago.
Guidance
For 2017, the company reaffirmed its earnings in the range of $3.05 to $3.35.
Revenues are reiterated to be in between $10.0 billion and $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin is still anticipated in the range of 9.5−10.0%. The company also reiterated its projection of cash flows provided by operating activities from continuing operations to be $475 million or more.
Peer Releases
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017 (ended Mar 31, 2017). The company’s adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate of $1.31 by 2.3%. Reported earnings also grew 3.1% from $1.30 per share earned a year ago.
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate of $2.76 by 8.7%. Earnings came in line with the year-ago period’s bottom line figure.
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share in line with the Zacks Consensus Estimate.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Leidos Holdings, Inc. (LDOS - Free Report) posted first-quarter 2017 adjusted earnings of 88 cents per share, beating the Zacks Consensus Estimate of 78 cents by 12.8%. Reported earnings also increased 22.2% from the year-ago figure of 72 cents.
Total Revenue
Leidos Holdings reported total revenue of $2,580 million in the first quarter, which surpassed the Zacks Consensus Estimate of $2,548.5 million by 1.2%. Reported revenues also improved 96.7% year over year.
Backlog
At the end of the first quarter, the company’s backlog of signed business orders was $16.9 billion, of which $4.9 billion was funded. Total backlog at the end of 2016 stood at $17.7 billion, of which $6 billion was funded.
Operational Statistics
Total cost of revenues in the quarter surged 96.7% to $2,270 million. Operating income was $141 million, compared with $89 million in the year-ago quarter.
Interest expenses were $34 million, up from $25 million in the year-ago quarter.
Segment Performance
Defense Solutions: Net sales at the segment improved 65.9% to $1,294 million from the prior-year figure of $780 million. Also, operating income improved to $79 million from the year-ago tally of $71 million, with operating margin contracting 300 basis points (“bps”) to 6.1%.
Health: The segment recorded net sales of $443 million in the reported quarter, up 159.1%. Operating income increased 193.8% to $47 million, while operating margin expanded 120 bps to 10.6%.
Civil: Net sales at the segment were $842 million, up 133.2%. Operating income grew 145.5% to $54 million, while operating margin was 6.4%.
Financials
Cash and cash equivalents as of Mar 31, 2017 were $206 million, compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the first quarter was $88 million, compared with outflow of $14 million a year ago.
Guidance
For 2017, the company reaffirmed its earnings in the range of $3.05 to $3.35.
Revenues are reiterated to be in between $10.0 billion and $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin is still anticipated in the range of 9.5−10.0%. The company also reiterated its projection of cash flows provided by operating activities from continuing operations to be $475 million or more.
Peer Releases
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017 (ended Mar 31, 2017). The company’s adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate of $1.31 by 2.3%. Reported earnings also grew 3.1% from $1.30 per share earned a year ago.
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate of $2.76 by 8.7%. Earnings came in line with the year-ago period’s bottom line figure.
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share in line with the Zacks Consensus Estimate.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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