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Will Segmental Sales Benefit Leidos' (LDOS) Q1 Earnings?
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Leidos Holdings, Inc. (LDOS - Free Report) is slated to report first-quarter 2023 results on May 2 before market open.
Leidos Holdings has a four-quarter earnings surprise of 6.05%, on average. With all segments expected to report strong sales growth, the top line of the company is likely to have witnessed a robust sales increase in the first quarter of 2023.
Defense Solutions’ Revenues
An increase in volumes due to certain program wins and a favorable impact of acquisitions must have aided the revenues of the Defense Solutions segment in the first quarter. The Zacks Consensus Estimate for Defense Solutions’ first-quarter revenues is currently pegged at $2,082 million, suggesting a growth rate of 1.7% from the prior-year reported figure.
Civil
A ramp-up on the NASA AEGIS program may have continued to contribute to this unit’s first-quarter performance. Increased security products, sales and maintenance as well as improved commercial energy businesses may have benefited the revenues of the segment in the first quarter.
The Zacks Consensus Estimate for the Civil segment’s first-quarter revenues, pegged at $881.6 million, suggests an improvement of 10.9% from the year-ago quarter’s reported figure.
Health
Increased volumes on Defense Healthcare Management System Modernization may have positively contributed to the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Health’s first-quarter revenues is pegged at $676.5 million. This suggests an increase of 4.1% from the year-ago quarter’s reported figure.
With the anticipated improvement in sales across all its segments, we expect Leidos Holdings’ overall top line to reflect growth in the first quarter.
The Zacks Consensus Estimate for first-quarter sales is pegged at $3.65 billion. This indicates an increase of 4.5% from the prior-year reported figure.
A strong top line is likely to have aided Leidos Holdings’ bottom line. However, rising inflation and ongoing supply-chain disruption may impact its bottom line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.58 per share, flat with the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Leidos Holdings this time. 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. However, that is not the case here.
Leidos Holdings has an Earnings ESP of -1.42% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are two defense players you may want to consider as these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for SPR’s first-quarter sales is pegged at $1.48 billion. This indicates an improvement of 25.8% from the prior-year reported figure.
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3. ERJ boasts a long-term earnings growth rate of 17%.
Embraer has a four-quarter average earnings surprise of 105.32%. The Zacks Consensus Estimate for ERJ’s first-quarter sales implies an improvement of 16.7% from the prior-year reported figure.
Upcoming Defense Release
Curtiss-Wright (CW - Free Report) is slated to report its first-quarter earnings on May 3. Curtiss-Wright has a four-quarter average earnings surprise of 4.42%.
The Zacks Consensus Estimate for CW’s first-quarter sales implies an improvement of 6.2% from the prior-year reported figure. The Zacks Consensus Estimate for its first-quarter earnings suggests a growth rate of 10.7% from the prior-year reported figure.
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Will Segmental Sales Benefit Leidos' (LDOS) Q1 Earnings?
Leidos Holdings, Inc. (LDOS - Free Report) is slated to report first-quarter 2023 results on May 2 before market open.
Leidos Holdings has a four-quarter earnings surprise of 6.05%, on average. With all segments expected to report strong sales growth, the top line of the company is likely to have witnessed a robust sales increase in the first quarter of 2023.
Defense Solutions’ Revenues
An increase in volumes due to certain program wins and a favorable impact of acquisitions must have aided the revenues of the Defense Solutions segment in the first quarter. The Zacks Consensus Estimate for Defense Solutions’ first-quarter revenues is currently pegged at $2,082 million, suggesting a growth rate of 1.7% from the prior-year reported figure.
Civil
A ramp-up on the NASA AEGIS program may have continued to contribute to this unit’s first-quarter performance. Increased security products, sales and maintenance as well as improved commercial energy businesses may have benefited the revenues of the segment in the first quarter.
The Zacks Consensus Estimate for the Civil segment’s first-quarter revenues, pegged at $881.6 million, suggests an improvement of 10.9% from the year-ago quarter’s reported figure.
Health
Increased volumes on Defense Healthcare Management System Modernization may have positively contributed to the revenues of the segment in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Health’s first-quarter revenues is pegged at $676.5 million. This suggests an increase of 4.1% from the year-ago quarter’s reported figure.
Leidos Holdings, Inc. Price and EPS Surprise
Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote
First-Quarter Estimates
With the anticipated improvement in sales across all its segments, we expect Leidos Holdings’ overall top line to reflect growth in the first quarter.
The Zacks Consensus Estimate for first-quarter sales is pegged at $3.65 billion. This indicates an increase of 4.5% from the prior-year reported figure.
A strong top line is likely to have aided Leidos Holdings’ bottom line. However, rising inflation and ongoing supply-chain disruption may impact its bottom line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.58 per share, flat with the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Leidos Holdings this time. 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. However, that is not the case here.
Leidos Holdings has an Earnings ESP of -1.42% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are two defense players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +16.58% and a Zacks Rank #3. Spirit Aerosystems delivered a four-quarter average negative earnings surprise of 157.65%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SPR’s first-quarter sales is pegged at $1.48 billion. This indicates an improvement of 25.8% from the prior-year reported figure.
Embraer S.A. (ERJ - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3. ERJ boasts a long-term earnings growth rate of 17%.
Embraer has a four-quarter average earnings surprise of 105.32%. The Zacks Consensus Estimate for ERJ’s first-quarter sales implies an improvement of 16.7% from the prior-year reported figure.
Upcoming Defense Release
Curtiss-Wright (CW - Free Report) is slated to report its first-quarter earnings on May 3. Curtiss-Wright has a four-quarter average earnings surprise of 4.42%.
The Zacks Consensus Estimate for CW’s first-quarter sales implies an improvement of 6.2% from the prior-year reported figure. The Zacks Consensus Estimate for its first-quarter earnings suggests a growth rate of 10.7% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.