Analysts Anticipate Increased Profit Amidst Robust Demand
Leidos Holdings, Inc. (LDOS), based in Reston, Virginia, stands as a pivotal player in the technology, engineering, and science sectors. With a strong market capitalization of $20.7 billion, the company applies cutting-edge technologies to enhance capabilities in defense, healthcare, and civil operations. Investors are eagerly awaiting the release of its Q4 earnings, scheduled for Tuesday, February 11, before the market opens.
As anticipation builds, analysts predict that LDOS will report a profit of $2.18 per share on a diluted basis, reflecting a 9.6% rise from $1.99 per share reported in the same quarter last year. Notably, the company has a history of exceeding Wall Street’s earnings per share (EPS) estimates, achieving this in its last four quarterly results.
In its latest quarter, Leidos achieved an adjusted EPS of $2.93, which surpassed consensus estimates by an impressive 49.5%. This strong performance resulted from a surge in demand within the defense and civil sectors, along with enhanced operational efficiencies and effective project delivery.
For the entire fiscal year, analysts forecast LDOS to report an EPS of $10.03, marking a significant 37.4% increase from $7.30 in fiscal 2023. Projected EPS for 2025 is expected to rise further, reaching $10.29, a 2.6% increase year over year.
Over the past 52 weeks, shares of Leidos Holdings have surged by 42.6%. This growth significantly outpaces the broader S&P 500 Index, which gained 24.6%, as well as the Technology Select Sector SPDR Fund’s return of 19.6% during the same period.
The momentum continued after the release of strong Q3 results on October 29, where Leidos reported revenues of $4.19 billion. This reflects a 6.9% increase year-over-year and exceeded consensus estimates by 3%. Additionally, full-year revenue guidance was raised to a midpoint of $16.4 billion, showcasing the company’s confidence in ongoing growth. Improvements were also seen in margins, with gross margin hitting 18.2%, operating margin at 12.3%, and EBITDA margin expanding to 14.2%.
Experts maintain a cautiously optimistic stance towards LDOS stock, categorizing it as a “Moderate Buy.” Out of 14 analysts, nine recommend a “Strong Buy” while five suggest a “Hold.” The average analyst price target for LDOS stands at $183.64, indicating a potential upside of 18.4% from current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
