NYSE$LDOS

Leidos Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Leidos reported strong Q4 2023 results, exceeding guidance ranges with record top- and bottom-line performance.

Leidos Holdings, Inc. reported an 8% increase in revenue for the fourth quarter of 2023, reaching $3.98 billion. Diluted earnings per share increased by 30% to $1.66, and non-GAAP diluted earnings per share increased by 9% to $1.99. The company's focus on cost controls and cash generation contributed to exceeding guidance ranges.

  • Revenues for the fourth quarter were $3.98 billion, up 8% year-over-year.
  • Diluted earnings per share for the fourth quarter were $1.66, up 30% year-over-year.
  • Non-GAAP diluted earnings per share for the fourth quarter were $1.99, up 9% year-over-year.
  • Net bookings totaled $2.8 billion in the fourth quarter, representing a book-to-bill ratio of 0.7.

Headline financials

Total Revenue

$3.98B

Previous: $3.7B+7.7%
EPS (adj)

$1.99

Previous: $1.83+8.7%
Net Income Margin

5.8%

Previous: 4.9%+18.4%
Adjusted EBITDA

$452M

Previous: $397M+13.9%
Adjusted EBITDA Margin

11.4%

Previous: 10.7%+6.5%
Capital Expenditures

-$78M

No prior period
Net Income

$230M

Previous: $180M+27.8%
Operating Income

$361M

Previous: $265M+36.2%
Gross Profit

$595M

Previous: $521M+14.2%
Stock-Based Comp

$20M

Previous: $20M+0.0%

Revenue & EPS history

Leidos · Revenue · Quarterly

$3.98B

Q4 2023+7.7%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Leidos · $2.07B total across 3 segments · Q3 2023

  • Health & Civil
    $1.06B+20.7%
  • Commercial & International
    $552M
  • Defense Systems
    $462M

Forward guidance

Leidos is initiating fiscal year 2024 guidance with revenues between $15.7 - $16.1 billion, adjusted EBITDA margin in the mid-to-high 10% range, non-GAAP diluted EPS between $7.50 - $7.90, and cash flows provided by operating activities of approximately $1.1 billion.

Tailwinds

  • Revenues between $15.7 - $16.1 billion
  • Adjusted EBITDA Margin in the mid-to-high 10% range
  • Non-GAAP Diluted EPS between $7.50 - $7.90
  • Cash Flows Provided by Operating Activities approximately $1.1 billion

Headwinds

  • Cash flows provided by operating activities reflects approximately $60 million of cash tax payments related to the Tax Cuts and Jobs Act of 2017 provision
  • The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs Leidos will incur
  • The actual impact on cash flows provided by operating activities will depend on whether Congress modifies or repeals this provision
  • The actual impact on cash flows provided by operating activities will depend on whether new guidance and interpretive rules are issued by the US Treasury

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 2023

Historical avgQ4 2023

-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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