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.
What's in Store for Leidos Holdings (LDOS) in Q2 Earnings?
Read MoreHide Full Article
Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release second-quarter 2020 results on Aug 4, before market opens. In the last-reported quarter, the company delivered a negative earnings surprise of 4.03%.
However, Leidos Holdings delivered a surprise of 6.65%, on average, in the trailing four quarters.
Let’s discuss how things have shaped ahead of the announcement.
Factors at Play
In May 2020, Leidos Holdings completed the acquisition of L3Harris Technologies' (LHX - Free Report) Security Detection and Automation businesses for $1 billion. Notably, positive synergies from this buyout are expected to have bolstered the company’s second-quarter top line performance.
The defense sector has remained more resilient to the novel coronavirus outbreak. With Leidos Holdings generating almost half of its revenues from the Defense Solutions segment, steady order growth from Pentagon and other U.S. allies is expected to have boosted defense revenues.
In its health business, amid the coronavirus pandemic, the company has been exploring opportunities to develop and offer virtual care solutions, to support a range of activities from patient intake and pre-screening to virtual visits with staff physicians via remote monitoring within the hospital, or other care environments. These must have boosted new program revenues for the company in the to-be-reported quarter
Notably, the Zacks Consensus Estimate for second-quarter revenues is pegged at $3.04 billion, which indicates a rise of 11.5% from the year-ago quarter’s reported figure.
However, the impacts of the pandemic are likely to have pushed up expenses for the company. For instance, to tackle COVID-19 crisis, Leidos Holdings has enabled teleworking capabilities through hardware software and cloud-based service deployments. To support this, the company has been hiring aggressively, having hired 1800 in the first quarter. This along with acquisition related expenses must have weighed on its quarterly bottom line.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.07, which indicates a decline of 7.8% from the year-ago quarter’s reported figure.
Moreover, in May, Leidos Holdings earned a payment of $84.6 million from VirnetX, resulting from the VirnetX, Inc. lawsuit against Apple Inc. for infringing VirnetX patents. We expect Leidos Holdings’ balance sheet to reflect this payment.
Earnings Whispers
Our proven model predicts an earnings beat for Leidos Holdings this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
What's in Store for Leidos Holdings (LDOS) in Q2 Earnings?
Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release second-quarter 2020 results on Aug 4, before market opens. In the last-reported quarter, the company delivered a negative earnings surprise of 4.03%.
However, Leidos Holdings delivered a surprise of 6.65%, on average, in the trailing four quarters.
Let’s discuss how things have shaped ahead of the announcement.
Factors at Play
In May 2020, Leidos Holdings completed the acquisition of L3Harris Technologies' (LHX - Free Report) Security Detection and Automation businesses for $1 billion. Notably, positive synergies from this buyout are expected to have bolstered the company’s second-quarter top line performance.
Leidos Holdings, Inc. Price and EPS Surprise
Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote
The defense sector has remained more resilient to the novel coronavirus outbreak. With Leidos Holdings generating almost half of its revenues from the Defense Solutions segment, steady order growth from Pentagon and other U.S. allies is expected to have boosted defense revenues.
In its health business, amid the coronavirus pandemic, the company has been exploring opportunities to develop and offer virtual care solutions, to support a range of activities from patient intake and pre-screening to virtual visits with staff physicians via remote monitoring within the hospital, or other care environments. These must have boosted new program revenues for the company in the to-be-reported quarter
Notably, the Zacks Consensus Estimate for second-quarter revenues is pegged at $3.04 billion, which indicates a rise of 11.5% from the year-ago quarter’s reported figure.
However, the impacts of the pandemic are likely to have pushed up expenses for the company. For instance, to tackle COVID-19 crisis, Leidos Holdings has enabled teleworking capabilities through hardware software and cloud-based service deployments. To support this, the company has been hiring aggressively, having hired 1800 in the first quarter. This along with acquisition related expenses must have weighed on its quarterly bottom line.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.07, which indicates a decline of 7.8% from the year-ago quarter’s reported figure.
Moreover, in May, Leidos Holdings earned a payment of $84.6 million from VirnetX, resulting from the VirnetX, Inc. lawsuit against Apple Inc. for infringing VirnetX patents. We expect Leidos Holdings’ balance sheet to reflect this payment.
Earnings Whispers
Our proven model predicts an earnings beat for Leidos Holdings this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Leidos Holdings has an Earnings ESP of +0.11% and carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Defense Releases
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>