Leidos (NYSE:LDOS) Posts Earnings Results, Beats Estimates By $0.58 EPS

Leidos (NYSE:LDOS) posted its earnings results on Monday. The aerospace company reported $3.62 earnings per share for the quarter, beating the consensus estimate of $3.04 by $0.58, Zacks reports. Leidos had a net margin of 7.80% and a return on equity of 30.81%. The business had revenue of $4.63 billion for the quarter, compared to analyst estimates of $4.71 billion. During the same quarter in the previous year, the business posted $3.05 EPS. The business’s quarterly revenue was up 3.6% on a year-over-year basis.

Leidos Price Performance

NYSE LDOS traded down $7.91 on Tuesday, reaching $136.25. The company’s stock had a trading volume of 369,908 shares, compared to its average volume of 1,282,197. The company has a debt-to-equity ratio of 1.13, a quick ratio of 1.60 and a current ratio of 1.63. The firm’s 50 day moving average is $129.38 and its two-hundred day moving average is $141.34. Leidos has a twelve month low of $98.86 and a twelve month high of $205.77. The stock has a market cap of $17.10 billion, a PE ratio of 12.67, a PEG ratio of 1.55 and a beta of 0.55.

Leidos Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 15th will be given a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 1.3%. This is a boost from Leidos’s previous quarterly dividend of $0.43. The ex-dividend date is Tuesday, December 15th. Leidos’s dividend payout ratio (DPR) is presently 16.04%.

Leidos announced that its Board of Directors has approved a stock repurchase program on Friday, July 31st that allows the company to buy back 20,000,000 shares. This repurchase authorization allows the aerospace company to buy shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Trending Headlines about Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Quarterly earnings significantly exceeded expectations. Leidos reported non-GAAP diluted earnings of $3.62 per share, up 19% year over year and well above the $3.04 consensus estimate. Net income reached $413 million, while adjusted EBITDA was $644 million, representing a 13.9% margin. Leidos Delivers Strong Third Quarter and Enhances Full-Year Guidance
• Positive Sentiment: Management enhanced its full-year guidance. The company highlighted robust operating performance and generated $523 million in operating cash flow and $476 million in non-GAAP free cash flow, supporting investor confidence in execution and capital flexibility. Leidos Tops Q3 Earnings Estimates
• Positive Sentiment: Missile-production plans strengthen the defense-growth narrative. Leidos is mobilizing suppliers to scale production of thousands of low-cost, long-range cruise missiles, including its Low-Cost Containerized Missile and AGM-190A Havoc Spear. The initiative could support future revenue and backlog growth if production contracts materialize. Leidos Mobilizes Supply Chain to Scale Production of Thousands of U.S. Cruise Missiles
• Positive Sentiment: The quarterly dividend was increased. Leidos raised its dividend 4.7% to $0.45 per share, or $1.80 annually, signaling confidence in recurring cash generation and returning more capital to shareholders.
• Negative Sentiment: Revenue modestly missed analyst expectations. Quarterly revenue was approximately $4.6 billion, up 3.6% year over year but below the $4.71 billion consensus forecast. This shortfall may temper the otherwise strong earnings reaction. Leidos Quarterly Earnings Results
• Negative Sentiment: Recent coverage also cited a lower consensus price target, creating a potential overhang despite the stronger quarterly results.

Insider Buying and Selling at Leidos

In other news, Director Gary May sold 1,000 shares of Leidos stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $140.85, for a total value of $140,850.00. Following the transaction, the director directly owned 10,204 shares of the company’s stock, valued at $1,437,233.40. This trade represents a 8.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Noel B. Geer sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the completion of the transaction, the director directly owned 34,274 shares of the company’s stock, valued at $4,820,980.84. This represents a 22.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.77% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

LDOS has been the subject of a number of research analyst reports. BNP Paribas Exane lifted their price target on shares of Leidos from $165.00 to $175.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 5th. Robert W. Baird set a $150.00 price objective on shares of Leidos in a research note on Wednesday, August 5th. Wall Street Zen upgraded shares of Leidos from a “hold” rating to a “buy” rating in a research note on Thursday, July 16th. Royal Bank Of Canada decreased their price objective on shares of Leidos from $180.00 to $170.00 and set an “outperform” rating for the company in a report on Wednesday, August 5th. Finally, Jefferies Financial Group lowered their price objective on Leidos from $145.00 to $130.00 and set a “hold” rating for the company in a report on Tuesday, October 6th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $150.85.

About Leidos

Leidos Holdings, Inc (NYSE: LDOS) is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.

The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.