Leidos Holdings, Inc.’s ( LDOS Quick Quote LDOS - Free Report) first-quarter 2021 adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate of $1.49 by 16.1%. Moreover, the bottom line grew 45.4% from $1.19 per share registered a year ago. The company’s GAAP earnings of $1.42 per share improved from the year-ago quarter’s 80 cents. Total Revenues
Leidos Holdings generated total revenues of $3,315 million in the quarter under consideration, which exceeded the Zacks Consensus Estimate of $3,213 million by 3.2%. The top line also improved 14.7% year over year. This increase in revenues is primarily attributable to program wins and a net increase in volumes on certain programs.
At the end of the reported quarter, the company’s total backlog was $32.6 billion compared with $31.9 billion at 2020-end. Of this, $7 billion was funded.
Total cost of revenues in the quarter increased 14.2% to $2,848 million. Operating income totaled $308 million compared with the year-ago quarter’s income of $192 million.
Non-GAAP operating income margin for the quarter was 11.1% compared with 8.5% in the prior-year quarter, primarily attributable to a net increase in higher-margin program volumes and program wins. Interest expenses summed $45 million compared with $48 million in the prior-year quarter. Segmental Performance Defense Solutions: Net revenues at this segment improved 14.8% to $1,958 million from the prior-year quarter’s $1,705 million. This upside can be primarily attributed to program wins, a net increase in volumes on certain programs and a benefit in exchange rate movements. The segment’s operating income escalated to $152 million from the year-ago quarter’s $95 million, with the operating margin expanding 220 basis points (bps) to 7.8%. Health: The segment recorded revenues of $591 million in the first quarter, up 11.5% year over year. The revenue increase was primarily attributable to a net increase in volumes on certain programs and program wins. Operating income surged 39.7% to $102 million, while operating margin expanded 350 bps to 173%. Civil: Revenues at this segment amounted to $766 million, up 17.1%. This uptick was primarily attributable to the acquisition of the SD&A businesses in the second quarter of fiscal 2020 and a net increase in program volumes. While operating income rose 25.4% to $74 million, operating margin contracted 70 bps to 9.7%. Leidos Holdings, Inc. Price, Consensus and EPS Surprise Financials
Cash and cash equivalents as of Apr 2, 2021, were $377 million compared with $524 million as of Jan 1, 2021.
Long-term debt, net of current portion, amounted to $4,663 million as of Apr 2, 2021, compared with $4,644 million as of Jan 1, 2021. Net cash provided by operating activities in the first quarter of 2021 was $237 million compared with $372 million a year ago. 2021 Guidance
Leidos Holdings revised its view for 2021. The company currently expects adjusted earnings in the $6.35-$6.65 range, up from $6.15-$6.45 per share anticipated earlier. The Zacks Consensus Estimate for 2021 earnings, pegged at $6.35 per share, is below the midpoint of the company’s projected view.
Leidos Holdings expects revenues of $13.7-$14.1 billion this year, unchanged from the previous guidance. The Zacks Consensus Estimate for 2021 revenues, pegged at $13.87 billion, is below the midpoint of the company-guided range. The company’s cash flow from operating activities is anticipated to be at or above $875 million. Zacks Rank
Leidos Holdings carries a Zacks Rank #4 (Sell).
You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Recent Defense Releases Lockheed Martin Corp. ( LMT Quick Quote LMT - Free Report) reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%. Hexcel Corporation ( HXL Quick Quote HXL - Free Report) reported first-quarter 2021 loss of 10 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 16 cents. Raytheon Technologies Corporation’s ( RTX Quick Quote RTX - Free Report) first-quarter 2021 adjusted earnings per share of 90 cents outpaced the Zacks Consensus Estimate of 88 cents by 2.3%. More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022. Click here for the 4 trades >>