Leidos Holdings, Inc. Earnings
Leidos Holdings, Inc. has unveiled a remarkable financial performance for the fourth quarter and fiscal year 2024. The company's unyielding growth trajectory is evident in its robust increase in both revenue and earnings. The financial summary table below encapsulates key achievements:
Financial Summary
| Financial Metric | Q4 2024 | Q4 2023 | Change | FY 2024 | FY 2023 | Change |
|---|---|---|---|---|---|---|
| Total Revenue | $4.37 billion | $3.97 billion | +10% | $16.66 billion | $15.43 billion | +8% |
| Diluted EPS | $2.12 | $1.66 | +28% | $9.22 | $1.44 | +540% |
| Non-GAAP Diluted EPS | $2.37 | $1.98 | +19% | $10.21 | $7.30 | +40% |
In summarizing Leidos' financial results, the company's fourth-quarter revenue hit a notable high of $4.37 billion, marking a 10% rise compared to the same period last year. The full-year revenue experienced an 8% increment, reaching $16.66 billion. Earnings per share saw a significant surge, posting a 28% increase for the fourth quarter and a phenomenal 540% jump on an annual basis.
Leidos Holdings, Inc. Results
The results demonstrate Leidos' ability to capitalize on market opportunities, particularly within its managed health services, which drove both quarterly and annual growth. With an EPS (Earnings Per Share) upsurge of 28% in Q4 2024, this indicates strong profitability and effective cost management. Over the fiscal year, the non-GAAP diluted EPS also climbed by 40%, reflecting the company’s strategic execution and operational efficiency.
Revenue Breakdown
Segment Performance
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | Change | FY 2024 Revenue | FY 2023 Revenue | Change |
|---|---|---|---|---|---|---|
| National Security & Digital | $1.89 billion | $1.80 billion | +5% | $7.37 billion | $7.23 billion | +2% |
| Health & Civil | $1.33 billion | $1.15 billion | +16% | $5.02 billion | $4.25 billion | +18% |
| Commercial & International | $604 million | $539 million | +12% | $2.25 billion | $2.12 billion | +6% |
| Defense Systems | $539 million | $504 million | +7% | $2.03 billion | $1.88 billion | +8% |
Each of Leidos' major segments posted revenue growth, further underpinning the overall ascending trends. The Health & Civil segment, in particular, stood out with a 16% quarterly increase, attributed largely to strategic program executions and the bolstering of managed health services. The other segments, including National Security & Digital, Commercial & International, and Defense Systems, also demonstrated significant expansion.
Key Developments
Leidos achieved substantial operational milestones over the quarter, marked by strategic contract acquisitions and expansions that add to a growing backlog. Highlights include:
- Securing net bookings worth $7.6 billion in Q4, culminating in a staggering $23.4 billion for the entire fiscal year.
- The year-end backlog ascended to an impressive $43.6 billion, reflecting an 18% increase, showcasing strong future revenue streams.
- The company forged a notable $4.1 billion contract with the U.S. Army for missile defense systems and played a pivotal role in the Transportation Security Administration's equipment efforts.
Comments from Company Officers
Leidos CEO, Tom Bell, lauded the company's strategic execution, attributing stellar financial results to successful program implementations and the capability to meet critical customer needs. Bell's vision for sustained progress highlights leveraging the company's diversified technological advancements to continue scaling growth.
Dividends and Share Repurchases
The Leidos Board of Directors has confirmed a quarterly cash dividend of $0.40 per share, payable on March 28, 2025, reinforcing the company’s commitment to providing shareholder value. Additionally, Leidos completed a $406 million share repurchase program, further demonstrating financial strength and investor confidence.
Leidos Holdings, Inc. Stock Forecast
Looking ahead, Leidos Holdings anticipates steady growth momentum throughout fiscal year 2025, powered by solid project pipelines and strategic market positioning. Based on recent financial accomplishments and market trends, Leidos’ stock trajectory is set for potential highs and lows as follows:
- High Projection: Given the ongoing contract wins, consistent revenue growth, and strong backlog, Leidos’ stock price could reasonably reach $155, as investors respond positively to firm strategies and earnings prowess.
- Low Projection: Should market forces and competitive pressures generate headwinds, the stock could retreat to lows of approximately $140, especially if external conditions constrain profitability.
The last trading price for Leidos Holdings stands at $142.77, with a modest stock price movement of +0.351% post-earnings release, alongside a solid market capitalization of $19.9 billion. As the company progresses into FY 2025, strategic investments and focus on foundational growth catalysts are likely to uphold its upward financial trajectory.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
