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Leidos Holdings (LDOS) Q1 Earnings Meet Estimates, Sales Lag
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Leidos Holdings, Inc. (LDOS - Free Report) reported first-quarter 2018 adjusted earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate. Earnings improved 17% from the year-ago quarter's figure of 88 cents.
Excluding one-time items, the company reported GAAP earnings of 66 cents per share, compared with the prior-year quarter’s earnings of 47 cents.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings posted total revenues of $2,443 million in the quarter, which missed the Zacks Consensus Estimate of $2,596 million by 5.9%. The figure also deteriorated 5.3% year over year.
Backlog
At the end of the first quarter, the company’s backlog of signed business orders was $17.6 billion, of which $4.6 billion was funded. Total backlog at the end of 2017 was $17.5 billion, of which $5 billion was funded.
Operational Statistics
Total cost of revenues in the reported quarter declined 6.6% to $2,086 million. Operating income was $159 million, compared with $141 million in the year-ago quarter.
Interest expenses totaled $34 million, down from $36 million in first-quarter 2017.
Segment Performance
Defense Solutions: Net sales at the segment dropped 9% to $1,178 million from the prior-year figure of $1,294 million. However, operating income improved 7.6% to $85 million from the year-ago tally of $79 million. Meanwhile, operating margin expanded 110 basis points (bps) to 7.2%.
Health: The segment recorded net sales of $425 million in the reported quarter, down 4.1%. While operating income declined 10.6% to $42 million, operating margin contracted 70 bps to 9.9%.
Civil: Net sales at the segment were $840 million, down 0.2%. Operating income improved 37% to $74 million and operating margin expanded 240 bps to 8.8%.
Financials
Cash and cash equivalents as of Mar 30, 2018, were $215 million, compared with $390 million as of Dec 29, 2017. Net cash inflow from operating activity in first-quarter 2018 was $22 million, compared with cash outflow from operating activity of $71 million a year ago.
Guidance
Leidos Holdings reaffirmed 2018 guidance. The company continues to expect adjusted earnings per share in the range of $4.15-$4.50 on revenues of $10.25-$10.65 billion.
Adjusted EBITDA margin is anticipated in the range of 10.1-10.4%. Leidos Holdings expects to generate cash flow from operating activities of $675 million or more in 2018.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #4 (Sell).
Other Defense Releases
Huntington Ingalls Industries, Inc.’s (HII - Free Report) first-quarter 2018 earnings of $3.48 per share missed the Zacks Consensus Estimate of $4.07 by 14.5%. It carries a Zacks Rank #3 (Hold).
L3 Technologies posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%.It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%. It carries a Zacks Rank #3.
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Leidos Holdings (LDOS) Q1 Earnings Meet Estimates, Sales Lag
Leidos Holdings, Inc. (LDOS - Free Report) reported first-quarter 2018 adjusted earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate. Earnings improved 17% from the year-ago quarter's figure of 88 cents.
Excluding one-time items, the company reported GAAP earnings of 66 cents per share, compared with the prior-year quarter’s earnings of 47 cents.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings, Inc. Price, Consensus and EPS Surprise | Leidos Holdings, Inc. Quote
Total Revenues
Leidos Holdings posted total revenues of $2,443 million in the quarter, which missed the Zacks Consensus Estimate of $2,596 million by 5.9%. The figure also deteriorated 5.3% year over year.
Backlog
At the end of the first quarter, the company’s backlog of signed business orders was $17.6 billion, of which $4.6 billion was funded. Total backlog at the end of 2017 was $17.5 billion, of which $5 billion was funded.
Operational Statistics
Total cost of revenues in the reported quarter declined 6.6% to $2,086 million. Operating income was $159 million, compared with $141 million in the year-ago quarter.
Interest expenses totaled $34 million, down from $36 million in first-quarter 2017.
Segment Performance
Defense Solutions: Net sales at the segment dropped 9% to $1,178 million from the prior-year figure of $1,294 million. However, operating income improved 7.6% to $85 million from the year-ago tally of $79 million. Meanwhile, operating margin expanded 110 basis points (bps) to 7.2%.
Health: The segment recorded net sales of $425 million in the reported quarter, down 4.1%. While operating income declined 10.6% to $42 million, operating margin contracted 70 bps to 9.9%.
Civil: Net sales at the segment were $840 million, down 0.2%. Operating income improved 37% to $74 million and operating margin expanded 240 bps to 8.8%.
Financials
Cash and cash equivalents as of Mar 30, 2018, were $215 million, compared with $390 million as of Dec 29, 2017. Net cash inflow from operating activity in first-quarter 2018 was $22 million, compared with cash outflow from operating activity of $71 million a year ago.
Guidance
Leidos Holdings reaffirmed 2018 guidance. The company continues to expect adjusted earnings per share in the range of $4.15-$4.50 on revenues of $10.25-$10.65 billion.
Adjusted EBITDA margin is anticipated in the range of 10.1-10.4%. Leidos Holdings expects to generate cash flow from operating activities of $675 million or more in 2018.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #4 (Sell).
Other Defense Releases
Huntington Ingalls Industries, Inc.’s (HII - Free Report) first-quarter 2018 earnings of $3.48 per share missed the Zacks Consensus Estimate of $4.07 by 14.5%. It carries a Zacks Rank #3 (Hold).
L3 Technologies posted first-quarter 2018 earnings of $2.34 per share from continuing operations, surpassing the Zacks Consensus Estimate of $1.99 by 2.2%.It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Spirit AeroSystems Holdings, Inc. (SPR - Free Report) reported first-quarter 2018 earnings of $1.10 per share, which missed the Zacks Consensus Estimate of $1.35 by 18.5%. It carries a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>