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Leidos (LDOS) Wins $7.9B Tactical IT Contract From U.S. Army
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Leidos Holdings Inc. (LDOS - Free Report) recently clinched the Common Hardware Systems 6th Generation (CHS-6) contract to procure tactical information technology (IT) hardware solutions for the U.S. Army. With a maximum value of $7.9 billion, this deal will enable LHX to leverage current commercial technology and industry investments to help enhance the mission readiness of complex IT hardware.
The contract has been provided by the Army Contracting Command-Aberdeen Proving Ground.
Benefits of the Deal
The latest contract will use the Leidos Intelligent Logistics Platform to increase mission readiness, enabling more than 120 Army, Department of Defense and federal government program offices and agencies to make better-informed and timely decisions. Equipment and services procured under the terms of this contract will be used to support a unified network for Multi-Domain Operations and Joint All Domain Command and Control.
Leidos’ AI/ML-enabled analytics platform will deliver Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) solutions at an increased speed, accuracy, resiliency and cost-efficiency.
Leidos’ Prospects in Defense IT Market
As nations across the globe are rapidly investing in the defense sector to protect their borders from unprecedented attacks, IT plays a key role in the modern world when it comes to detecting threats and anomalous activities against a country. Per Allied Market Research’s Report, the global defense IT spending market was valued at $79.68 billion in 2020 and is projected to reach $137.65 billion in 2030, registering a CAGR of 6.1%.
Such abounding prospects in the defense IT market business should boost the growth of Leidos. Notably, Leidos’ Defense Solutions business segment offers services for the U.S. Intelligence Community, military commands, as well as other government and commercial customers. The portfolio includes enterprise and mission IT, large-scale intelligence systems, command and control, geospatial and data analytics, cybersecurity, logistics, training and intelligence analysis and operations support.
Peer Moves
Some other prominent players with expanding operations in the defense IT market are BAE Systems PLC (BAESY - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics Corp. (GD - Free Report) .
BAE Systems is a trusted provider of global IT and cyber security solutions, and network management and support services to government agencies. Its Cyber and Intelligence business segment comprises U.S.-based Intelligence & Security and U.K.-headquartered Digital Intelligence businesses, covering the Group’s cyber security and secure government activities.
BAESY’s long-term earnings growth is pegged at 14%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 33.6% from that reported in 2022.
Northrop Grumman, for 60 years, has been a leader in the design, development and delivery of end-to-end communications & advanced networking capabilities for the U.S. and allied military forces operating across multiple battlespace domains. Its Defense Systems unit designs, develops and integrates all-domain command and control (C2) and weapons systems.
NOC’s long-term earnings growth is pegged at 4.1%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 5.6% from that reported in 2022.
General Dynamics’ Technologies business segment serves an expanding market that increasingly seeks solutions combining leading-edge electronic hardware with specialized software. Recently, General Dynamics Information Technology announced that it won all initial task orders on the $4.5 billion Department of the Air Force Security Support Services contract.
GD’s long-term earnings growth is pegged at 8.9%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 7.3% from that reported in 2022.
Price Performance
In the past year, shares of LDOS have gained 2% against the industry’s 6.9% decline.
Image: Bigstock
Leidos (LDOS) Wins $7.9B Tactical IT Contract From U.S. Army
Leidos Holdings Inc. (LDOS - Free Report) recently clinched the Common Hardware Systems 6th Generation (CHS-6) contract to procure tactical information technology (IT) hardware solutions for the U.S. Army. With a maximum value of $7.9 billion, this deal will enable LHX to leverage current commercial technology and industry investments to help enhance the mission readiness of complex IT hardware.
The contract has been provided by the Army Contracting Command-Aberdeen Proving Ground.
Benefits of the Deal
The latest contract will use the Leidos Intelligent Logistics Platform to increase mission readiness, enabling more than 120 Army, Department of Defense and federal government program offices and agencies to make better-informed and timely decisions. Equipment and services procured under the terms of this contract will be used to support a unified network for Multi-Domain Operations and Joint All Domain Command and Control.
Leidos’ AI/ML-enabled analytics platform will deliver Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) solutions at an increased speed, accuracy, resiliency and cost-efficiency.
Leidos’ Prospects in Defense IT Market
As nations across the globe are rapidly investing in the defense sector to protect their borders from unprecedented attacks, IT plays a key role in the modern world when it comes to detecting threats and anomalous activities against a country. Per Allied Market Research’s Report, the global defense IT spending market was valued at $79.68 billion in 2020 and is projected to reach $137.65 billion in 2030, registering a CAGR of 6.1%.
Such abounding prospects in the defense IT market business should boost the growth of Leidos. Notably, Leidos’ Defense Solutions business segment offers services for the U.S. Intelligence Community, military commands, as well as other government and commercial customers. The portfolio includes enterprise and mission IT, large-scale intelligence systems, command and control, geospatial and data analytics, cybersecurity, logistics, training and intelligence analysis and operations support.
Peer Moves
Some other prominent players with expanding operations in the defense IT market are BAE Systems PLC (BAESY - Free Report) , Northrop Grumman Corp. (NOC - Free Report) and General Dynamics Corp. (GD - Free Report) .
BAE Systems is a trusted provider of global IT and cyber security solutions, and network management and support services to government agencies. Its Cyber and Intelligence business segment comprises U.S.-based Intelligence & Security and U.K.-headquartered Digital Intelligence businesses, covering the Group’s cyber security and secure government activities.
BAESY’s long-term earnings growth is pegged at 14%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 33.6% from that reported in 2022.
Northrop Grumman, for 60 years, has been a leader in the design, development and delivery of end-to-end communications & advanced networking capabilities for the U.S. and allied military forces operating across multiple battlespace domains. Its Defense Systems unit designs, develops and integrates all-domain command and control (C2) and weapons systems.
NOC’s long-term earnings growth is pegged at 4.1%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 5.6% from that reported in 2022.
General Dynamics’ Technologies business segment serves an expanding market that increasingly seeks solutions combining leading-edge electronic hardware with specialized software. Recently, General Dynamics Information Technology announced that it won all initial task orders on the $4.5 billion Department of the Air Force Security Support Services contract.
GD’s long-term earnings growth is pegged at 8.9%. The Zacks Consensus Estimate for 2023 sales indicates an improvement of 7.3% from that reported in 2022.
Price Performance
In the past year, shares of LDOS have gained 2% against the industry’s 6.9% decline.
Image Source: Zacks Investment Research
Zacks Rank
Leidos currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.