NYSE$LDOS

Leidos Holdings Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Leidos reported strong Q4 2022 results, with revenue up 6% year-over-year and non-GAAP diluted EPS up 17% year-over-year.

Leidos Holdings, Inc. reported strong financial results for the fourth quarter and fiscal year 2022. The company's revenue for the fourth quarter was $3.7 billion, up 6% year-over-year, and the non-GAAP diluted EPS was $1.83, up 17% year-over-year. The company's performance was driven by its diversified and resilient portfolio and investments in technology and innovation.

  • Revenues for the fourth quarter were $3.7 billion, a 6% increase year-over-year.
  • Diluted earnings per share for the fourth quarter were $1.28, a 4% increase year-over-year.
  • Non-GAAP diluted earnings per share for the fourth quarter were $1.83, a 17% increase year-over-year.
  • Net bookings totaled $3.7 billion in the fourth quarter, representing a book-to-bill ratio of 1.0.

Headline financials

Total Revenue

$3.7B

Previous: $3.49B+5.9%
EPS (adj)

$1.83

Previous: $1.56+17.3%
Net Income Margin

4.9%

Previous: 5.0%-2.0%
Adjusted EBITDA

$397M

Previous: $359M+10.6%
Adjusted EBITDA Margin

10.7%

Previous: 10.3%+3.9%
Free Cash Flow

$52M

Previous: $177M-70.6%
Net Income

$180M

Previous: $176M+2.3%
Operating Income

$265M

Previous: $270M-1.9%
Gross Profit

$521M

Previous: $508M+2.6%
Cash & Equivalents

$516M

Previous: $727M-29.0%
Total Assets

$13.1B

Previous: $13.3B-1.4%
Stock-Based Comp

$20M

Previous: $18M+11.1%

Revenue & EPS history

Leidos · Revenue · Quarterly

$3.7B

Q4 2022+5.9%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Leidos · $3.01B total across 2 segments · Q4 2022

  • Defense Systems
    $2.07B+0.3%
  • Health & Civil
    $938M+17.3%

Forward guidance

Leidos is initiating fiscal year 2023 guidance and expects growth in revenues and solid margin in line with long-term model.

Tailwinds

  • Revenues (billions): $14.7 - $15.1
  • Adjusted EBITDA Margin: 10.3% - 10.5%
  • Non-GAAP Diluted EPS: $6.40 - $6.80
  • Cash Flows Provided by Operating Activities (millions): at or above $700
  • Expects growth in revenues and solid margin in line with long-term model

Headwinds

  • Fiscal year 2023 guidance for cash flows provided by operating activities reflects approximately $300 million of additional cash taxes compared to fiscal year 2022
  • Additional cash taxes primarily related to the Tax Cuts and Jobs Act of 2017 provision requiring the capitalization and amortization of research and development costs that went into effect on January 1, 2022.
  • Leidos accrued, but did not pay the incremental 2022 cash taxes and now expects to make payments in 2023 to cover both the 2022 and 2023 tax amounts.
  • The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs Leidos will incur.
  • Impact will depend on whether Congress modifies or repeals this provision and 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 2022

Historical avgQ4 2022

-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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