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) fourth-quarter 2022 adjusted earnings of $1.83 per share beat the Zacks Consensus Estimate of $1.61 by 13.7%. The bottom line also improved 17% from the $1.56 per share registered a year ago.
The company reported GAAP earnings of $1.28 per share, which increased from the year-ago quarter’s earnings of $1.23. For the full-year 2022, LDOS reported adjusted earnings of $6.60 per share, which surpassed the Zacks Consensus Estimate of $6.37.
Total Revenues
Leidos Holdings generated total revenues of $3,697 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,609 million by 2.4%. The top line also improved 5.9% year over year.
For the full-year 2022, total revenues came in at $14.39 billion, beating the Zacks Consensus Estimate of $14.31 billion by 0.6%. Total revenues also increased 4.8% year over year.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
At the end of the fourth quarter of 2022, the company’s total backlog was $35.78 billion, up from $35.02 billion at the third-quarter 2022 end. Of this, $8.38 billion was funded.
Operational Statistics
The total cost of revenues in the quarter increased by 6.5% to $3,176 million. The operating income totaled $364 million compared with the year-ago quarter’s operating income of $332 million.
The operating income margin for the quarter was 9.8% compared with 9.5% in the prior-year quarter. Interest expenses were $51 million, up 10.9% year over year.
Segmental Performance
Defense Solutions: Net revenues in this segment improved 0.3% year over year to $2,068 million in the fourth quarter. The increase can be attributed to higher Navy NGEN-R SMIT and various force protection programs.
Moreover, the segment’s operating income increased to $364 million from the year-ago quarter’s $332 million, with the operating margin being 9.8%.
Health: The segment recorded revenues of $691 million in the fourth quarter, which increased 10% year over year. The increase in revenues was the result of increased volumes on the Defense Healthcare Management System Modernization program, the ramp-up of the Military and Defense Healthcare Management System Modernization and new work on SSA ITSSC2.
The operating income was $99 million compared with the year-ago quarter’s income of $112 million. The operating margin came in at 14.3%.
Civil: Revenues in this segment amounted to $938 million, up 17%. The upside was driven by the ramp-up of the National Aeronautics and Space Administration and Advanced Enterprise Global Information Technology Solutions contract. While the operating income increased from $80 million to $105 million, the operating margin was 11.2%.
Financials
Leidos Holdings’ cash and cash equivalents as of Dec 30, 2022 were $516 million compared with $727 million as of Dec 31, 2021.
The long-term debt, net of the current portion, amounted to $3,928 million as of Dec 30, 2022 compared with $4,593 million as of Dec 31, 2021.
Net cash provided by operating activities in 2022 was $857 million compared with $927 million a year ago.
2023 Guidance
Leidos Holdings initiated its 2023 view. The company expects to generate adjusted earnings in the range of $6.40-$6.80 per share. The Zacks Consensus Estimate for 2023 earnings, pegged at $6.80 per share, is higher than the midpoint of the guidance range.
LDOS expects revenues in the range of $14.7-$15.1 billion. The Zacks Consensus Estimate for 2023 revenues, pegged at $15.04 billion, is higher than the midpoint of the guided range. The company expects its cash flow from operating activities to be at or more than $700 million.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #4 (Sell).
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2022 earnings of $3.07 per share increased 2.7% from the $2.99 reported in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of $3.14 by 2.2%.
Total revenues came in at $2,812 million, beating the Zacks Consensus Estimate of $2,691.6 million by 4.5%. The top line also improved 5% from $2,677 million in the year-ago quarter.
TransDigm Group Incorporated (TDG - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $4.58 per share, which beat the Zacks Consensus Estimate of $4.31 by 6.3%. The bottom line improved by a solid 52.7% from the prior-year reported figure of $3 per share.
Net sales amounted to $1,397 million in the fiscal first quarter, a 17% increase from $1,194 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,364 million by 2.4%.
General Dynamics Corporation (GD - Free Report) reported a fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also improved 5.4% from the year-ago quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Leidos Holdings (LDOS) Q4 Earnings Beat, Revenues Rise Y/Y
Leidos Holdings, Inc.’s (LDOS - Free Report) fourth-quarter 2022 adjusted earnings of $1.83 per share beat the Zacks Consensus Estimate of $1.61 by 13.7%. The bottom line also improved 17% from the $1.56 per share registered a year ago.
The company reported GAAP earnings of $1.28 per share, which increased from the year-ago quarter’s earnings of $1.23. For the full-year 2022, LDOS reported adjusted earnings of $6.60 per share, which surpassed the Zacks Consensus Estimate of $6.37.
Total Revenues
Leidos Holdings generated total revenues of $3,697 million in the quarter under consideration, exceeding the Zacks Consensus Estimate of $3,609 million by 2.4%. The top line also improved 5.9% year over year.
For the full-year 2022, total revenues came in at $14.39 billion, beating the Zacks Consensus Estimate of $14.31 billion by 0.6%. Total revenues also increased 4.8% year over year.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings, Inc. price-consensus-eps-surprise-chart | Leidos Holdings, Inc. Quote
Backlog
At the end of the fourth quarter of 2022, the company’s total backlog was $35.78 billion, up from $35.02 billion at the third-quarter 2022 end. Of this, $8.38 billion was funded.
Operational Statistics
The total cost of revenues in the quarter increased by 6.5% to $3,176 million. The operating income totaled $364 million compared with the year-ago quarter’s operating income of $332 million.
The operating income margin for the quarter was 9.8% compared with 9.5% in the prior-year quarter. Interest expenses were $51 million, up 10.9% year over year.
Segmental Performance
Defense Solutions: Net revenues in this segment improved 0.3% year over year to $2,068 million in the fourth quarter. The increase can be attributed to higher Navy NGEN-R SMIT and various force protection programs.
Moreover, the segment’s operating income increased to $364 million from the year-ago quarter’s $332 million, with the operating margin being 9.8%.
Health: The segment recorded revenues of $691 million in the fourth quarter, which increased 10% year over year. The increase in revenues was the result of increased volumes on the Defense Healthcare Management System Modernization program, the ramp-up of the Military and Defense Healthcare Management System Modernization and new work on SSA ITSSC2.
The operating income was $99 million compared with the year-ago quarter’s income of $112 million. The operating margin came in at 14.3%.
Civil: Revenues in this segment amounted to $938 million, up 17%. The upside was driven by the ramp-up of the National Aeronautics and Space Administration and Advanced Enterprise Global Information Technology Solutions contract. While the operating income increased from $80 million to $105 million, the operating margin was 11.2%.
Financials
Leidos Holdings’ cash and cash equivalents as of Dec 30, 2022 were $516 million compared with $727 million as of Dec 31, 2021.
The long-term debt, net of the current portion, amounted to $3,928 million as of Dec 30, 2022 compared with $4,593 million as of Dec 31, 2021.
Net cash provided by operating activities in 2022 was $857 million compared with $927 million a year ago.
2023 Guidance
Leidos Holdings initiated its 2023 view. The company expects to generate adjusted earnings in the range of $6.40-$6.80 per share. The Zacks Consensus Estimate for 2023 earnings, pegged at $6.80 per share, is higher than the midpoint of the guidance range.
LDOS expects revenues in the range of $14.7-$15.1 billion. The Zacks Consensus Estimate for 2023 revenues, pegged at $15.04 billion, is higher than the midpoint of the guided range. The company expects its cash flow from operating activities to be at or more than $700 million.
Zacks Rank
Leidos Holdings currently 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
Huntington Ingalls Industries, Inc.’s (HII - Free Report) fourth-quarter 2022 earnings of $3.07 per share increased 2.7% from the $2.99 reported in the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate of $3.14 by 2.2%.
Total revenues came in at $2,812 million, beating the Zacks Consensus Estimate of $2,691.6 million by 4.5%. The top line also improved 5% from $2,677 million in the year-ago quarter.
TransDigm Group Incorporated (TDG - Free Report) reported first-quarter fiscal 2023 adjusted earnings of $4.58 per share, which beat the Zacks Consensus Estimate of $4.31 by 6.3%. The bottom line improved by a solid 52.7% from the prior-year reported figure of $3 per share.
Net sales amounted to $1,397 million in the fiscal first quarter, a 17% increase from $1,194 million in the prior-year quarter. The reported figure also beat the Zacks Consensus Estimate of $1,364 million by 2.4%.
General Dynamics Corporation (GD - Free Report) reported a fourth-quarter 2022 EPS of $3.58, which beat the Zacks Consensus Estimate of $3.53 per share by 1.4%. Quarterly earnings increased 5.6% from $3.39 per share in the year-ago quarter.
General Dynamics’ fourth-quarter revenues of $10,851 million beat the Zacks Consensus Estimate of $10,674 million by 1.7%. Revenues also improved 5.4% from the year-ago quarter.