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, Inc.’s (LDOS - Free Report) first-quarter 2022 adjusted earnings of $1.58 per share beat the Zacks Consensus Estimate of $1.49 by 6%. The bottom line, however, declined 8.7% from $1.73 per share registered a year ago.
The company reported GAAP earnings of $1.25 per share, which deteriorated from the year-ago quarter’s earnings of $1.42.
The year-over-year downside can be attributed to the absence of the $26 million net benefit from an adjustment to legal reserves related to the Mission Support Alliance (MSA) joint venture, which the company recorded in first-quarter 2021.
Leidos Holdings generated total revenues of $3,494 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,386 million by 3.2%.
The top line also improved 5.4% year over year. This increase in revenues is attributable to growth in all three of the company’s segments.
Backlog
At the end of first-quarter 2022, the company’s total backlog was $36.35 billion, up from $34.46 at 2021-end. Of this, $7.09 billion was funded.
Operational Statistics
The total cost of revenues in the quarter increased 4.7% to $2,982 million.
Operating income totaled $271 million compared with the year-ago quarter’s income of $308 million.
The operating income margin for the quarter was 7.8% compared with 9.3% in the prior-year quarter.
Interest expenses were $48 million, up 6.7% year over year.
Segmental Performance
Defense Solutions: Net revenues in this segment improved 4.6% year over year to $2,049 million in the first quarter. This upside can be primarily attributed to the ramp-up of the Navy NGEN-R SMIT contract and the Enduring Indirect Fires Protection Capability (IFPC) contracts.
The segment’s operating income declined to $133 million from the year-ago quarter’s $152 million, with the operating margin being 6.5%.
Health: The segment recorded revenues of $650 million in the first quarter, which rose 10% year over year. The uptick was the result of increased volumes on the DHMSM program and the ramp-up of new programs such as Military and Family Life Counseling (MFLC).
Operating income was $118 million compared with the year-ago quarter’s income of $102 million. The operating margin came in at 18.2%.
Civil: Revenues in this segment amounted to $795 million, up 3.8%. The revenue upside was driven by increased demand in existing programs with the Department of Energy (DoE) and Federal Aviation Administration (FAA) as well as commercial energy providers.
While operating income declined from $74 million to $43 million, the operating margin was 5.4%.
Financials
Cash and cash equivalents as of Apr 1, 2022 was $297 million compared with $727 million as of Dec 31, 2021.
Long-term debt, net of current portion, amounted to $4,569 million as of Apr 1, 2022 compared with $4,593 million as of Dec 31, 2021.
Net cash provided by operating activities during the first quarter of 2022 was $93 million compared with $239 million a year ago.
2022 Guidance
Leidos Holdings reaffirmed its 2022 view. The company still expects to generate adjusted earnings in the range of $6.10-$6.50 per share. The Zacks Consensus Estimate for 2022 earnings, pegged at $6.41 per share, lies above the mid-point of the guidance range.
Leidos Holdings also continues to expect its revenues in the range of $13.9-$14.3 billion. The Zacks Consensus Estimate for 2022 revenues, pegged at $14.11 billion, is almost in line with the mid-point of the guided range.
The company’s cash flow from operating activities is still anticipated to be at or above $1 billion.
Raytheon Technologies’ (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.
Raytheon’s first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.
Lockheed Martin (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line however declined 1.8% year over year.
Lockheed Martin’s net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2022 adjusted earnings of $4.27 per share, which surpassed the Zacks Consensus Estimate of $4.09 by 4.4%. The bottom line also improved 33.9% from the year-ago quarter’s $3.19 per share.
Teledyne’s total sales in the first quarter amounted to $1,321 million, which exceeded the Zacks Consensus Estimate of $1,315 million by 0.5%. The top line also improved 64% from $805.7 million reported a year ago.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Leidos Holdings (LDOS) Q1 Earnings Beat, Revenues Rise Y/Y
Leidos Holdings, Inc.’s (LDOS - Free Report) first-quarter 2022 adjusted earnings of $1.58 per share beat the Zacks Consensus Estimate of $1.49 by 6%. The bottom line, however, declined 8.7% from $1.73 per share registered a year ago.
The company reported GAAP earnings of $1.25 per share, which deteriorated from the year-ago quarter’s earnings of $1.42.
The year-over-year downside can be attributed to the absence of the $26 million net benefit from an adjustment to legal reserves related to the Mission Support Alliance (MSA) joint venture, which the company recorded in first-quarter 2021.
Leidos Holdings, Inc. price-consensus-eps-surprise-chart | Leidos Holdings, Inc. Quote
Total Revenues
Leidos Holdings generated total revenues of $3,494 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,386 million by 3.2%.
The top line also improved 5.4% year over year. This increase in revenues is attributable to growth in all three of the company’s segments.
Backlog
At the end of first-quarter 2022, the company’s total backlog was $36.35 billion, up from $34.46 at 2021-end. Of this, $7.09 billion was funded.
Operational Statistics
The total cost of revenues in the quarter increased 4.7% to $2,982 million.
Operating income totaled $271 million compared with the year-ago quarter’s income of $308 million.
The operating income margin for the quarter was 7.8% compared with 9.3% in the prior-year quarter.
Interest expenses were $48 million, up 6.7% year over year.
Segmental Performance
Defense Solutions: Net revenues in this segment improved 4.6% year over year to $2,049 million in the first quarter. This upside can be primarily attributed to the ramp-up of the Navy NGEN-R SMIT contract and the Enduring Indirect Fires Protection Capability (IFPC) contracts.
The segment’s operating income declined to $133 million from the year-ago quarter’s $152 million, with the operating margin being 6.5%.
Health: The segment recorded revenues of $650 million in the first quarter, which rose 10% year over year. The uptick was the result of increased volumes on the DHMSM program and the ramp-up of new programs such as Military and Family Life Counseling (MFLC).
Operating income was $118 million compared with the year-ago quarter’s income of $102 million. The operating margin came in at 18.2%.
Civil: Revenues in this segment amounted to $795 million, up 3.8%. The revenue upside was driven by increased demand in existing programs with the Department of Energy (DoE) and Federal Aviation Administration (FAA) as well as commercial energy providers.
While operating income declined from $74 million to $43 million, the operating margin was 5.4%.
Financials
Cash and cash equivalents as of Apr 1, 2022 was $297 million compared with $727 million as of Dec 31, 2021.
Long-term debt, net of current portion, amounted to $4,569 million as of Apr 1, 2022 compared with $4,593 million as of Dec 31, 2021.
Net cash provided by operating activities during the first quarter of 2022 was $93 million compared with $239 million a year ago.
2022 Guidance
Leidos Holdings reaffirmed its 2022 view. The company still expects to generate adjusted earnings in the range of $6.10-$6.50 per share. The Zacks Consensus Estimate for 2022 earnings, pegged at $6.41 per share, lies above the mid-point of the guidance range.
Leidos Holdings also continues to expect its revenues in the range of $13.9-$14.3 billion. The Zacks Consensus Estimate for 2022 revenues, pegged at $14.11 billion, is almost in line with the mid-point of the guided range.
The company’s cash flow from operating activities is still anticipated to be at or above $1 billion.
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.
Recent Defense Releases
Raytheon Technologies’ (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.
Raytheon’s first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.
Lockheed Martin (LMT - Free Report) reported first-quarter 2022 earnings of $6.44 per share, which surpassed the Zacks Consensus Estimate of $6.22 by 3.5%. The bottom line however declined 1.8% year over year.
Lockheed Martin’s net sales amounted to $14.96 billion, which missed the Zacks Consensus Estimate of $15.53 billion by 3.7%. The top line also declined 8% from $16.26 billion reported in the year-ago quarter
Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2022 adjusted earnings of $4.27 per share, which surpassed the Zacks Consensus Estimate of $4.09 by 4.4%. The bottom line also improved 33.9% from the year-ago quarter’s $3.19 per share.
Teledyne’s total sales in the first quarter amounted to $1,321 million, which exceeded the Zacks Consensus Estimate of $1,315 million by 0.5%. The top line also improved 64% from $805.7 million reported a year ago.