NYSE$LDOS

Leidos Holdings Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a 7% increase in revenue and a decrease in diluted EPS by 10% compared to the same quarter last year.

Leidos Holdings, Inc. reported Q4 2021 financial results, with revenues increasing by 7% year-over-year to $3.49 billion. Diluted earnings per share decreased by 10% to $1.23, while non-GAAP diluted earnings per share decreased by 4% to $1.56. The company's backlog at the end of fiscal year 2021 was $34.5 billion.

  • Revenues for the fourth quarter were $3.49 billion, up 7% year-over-year.
  • Diluted earnings per share for the fourth quarter were $1.23, down 10% year-over-year.
  • Non-GAAP diluted earnings per share for the fourth quarter was $1.56, down 4% year-over-year.
  • Net bookings totaled $3.2 billion, representing a book-to-bill ratio of 0.9.

Headline financials

Total Revenue

$3.49B

Previous: $3.25B+7.3%
EPS (adj)

$1.56

Previous: $1.63-4.3%
Net Income Margin

5.0%

No prior period
Adjusted EBITDA

$359M

No prior period
Adjusted EBITDA Margin

10.3%

No prior period
Free Cash Flow

$177M

Previous: $871M-79.7%
Net Income

$176M

Previous: $181M-2.8%
Operating Income

$270M

Previous: $261M+3.4%
Gross Profit

$508M

Previous: $427M+19.0%
Cash & Equivalents

$727M

Previous: $668M+8.8%
Total Assets

$13.3B

Previous: $9.37B+41.6%
Stock-Based Comp

$18M

Previous: $52M-65.4%

Revenue & EPS history

Leidos · Revenue · Quarterly

$3.49B

Q4 2021+7.3%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Leidos · $2.86B total across 2 segments · Q4 2021

  • Defense Systems
    $2.06B
  • Health & Civil
    $800M

Forward guidance

Leidos is initiating fiscal year 2022 guidance with revenues between $13.9 - $14.3 billion, adjusted EBITDA margin between 10.3% - 10.5%, non-GAAP diluted EPS between $6.10 - $6.50, and cash flows provided by operating activities at or above $1.0 billion.

Headwinds

  • A provision of the Tax Cuts and Jobs Act of 2017 went into effect on January 1, 2022, that requires companies to capitalize and amortize research and development costs over five years rather than deducting such costs in the year incurred for tax purposes.
  • Leidos currently estimates that cash flows provided by operating activities would decrease by approximately $150 million in fiscal 2022 if the provision remains in effect.
  • Net deferred tax assets would increase by a similar amount if the provision remains in effect.
  • The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs the Company will incur.
  • The actual impact depends on whether Congress modifies or repeals this provision and on whether new guidance and interpretive rules are issued by the US Treasury, among other factors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

-0.7%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.5%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+10.2%

Q3 2023

Best reaction

-19.7%

Q4 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.8%-12.6%-16.2%
Q4 2026-8.0%-1.6%-5.9%
Q3 2026+3.3%+2.0%-0.3%
Q1 2025+4.7%+5.2%-1.7%
Q4 2024-3.6%-7.4%-6.9%
Q3 2024+9.4%+7.8%-3.4%
Q2 2024-5.6%-5.0%+2.9%
Q1 2024+8.0%+7.6%+10.4%
Q4 2023+6.1%+8.1%+11.5%
Q3 2023+10.2%+13.2%+16.9%
Q2 2023+5.4%+3.8%+4.3%
Q1 2023-14.2%-14.3%-16.8%
Q4 2022-2.8%+0.5%-8.1%
Q3 2022+2.7%+4.1%+7.9%
Q2 2022-5.0%-4.4%-9.6%
Q1 2022+1.2%-0.3%+2.1%
Q4 2021+1.6%+6.5%+19.0%
Q3 2021-6.0%-6.4%-11.4%
Q2 2021-11.8%-11.9%-7.4%
Q1 2021+0.0%+0.3%-0.2%
Q4 2020-12.9%-14.8%-7.3%
Q3 2020+6.0%+9.0%+24.2%
Q2 2020-8.7%-5.2%-9.5%
Q1 2020-1.7%+3.8%+7.1%
Q3 2019+7.3%+5.6%+12.6%
Q2 2019-1.5%-1.8%+4.7%
Q1 2019+8.9%+11.3%+11.9%
Q4 2018-2.7%+1.8%+0.6%
Q3 2018-2.2%+0.8%+0.5%
Q2 2018+7.4%+7.3%+10.1%
Q1 2018-3.1%-0.8%-1.9%
Q4 2017+1.0%+0.0%-0.3%
Q3 2017+1.3%-0.4%-0.8%
Q2 2017+7.5%+8.4%+12.4%
Q1 2017+1.6%-2.0%+4.4%
Q4 2016+1.8%+0.3%-1.0%
Q3 2016+6.2%+5.6%+25.1%
Q2 2016-4.4%-7.6%-24.4%
Q1 2016-3.8%
Q4 2015-5.4%
Q3 2015+8.2%
Q2 2015+6.9%
Q1 2015-5.6%
Q4 2014-9.1%
Q3 2014+1.8%
Q2 2014-6.9%
Q1 2014+6.4%
Q4 2013-19.7%
Q3 2013-0.4%
Q2 2013-5.4%
Q1 2013+1.9%
Q4 2012+3.3%
Q3 2012-2.2%
Q2 2012+3.5%
Q1 2012-1.8%
Q1 2011-3.4%
Q4 2009-0.8%
Q1 2010-0.8%
Q4 2011-0.8%
Q3 2010-6.7%
Q3 2011-6.7%
Q2 2011+1.1%
Q4 2010+1.1%
Q2 2010+1.1%

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