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Leidos Holdings, Inc.’s (LDOS - Free Report) fourth-quarter 2021 adjusted earnings of $1.56 per share missed the Zacks Consensus Estimate of $1.60 by 2.5%. The bottom line also declined 4.3% from $1.63 per share registered a year ago.
The company reported GAAP earnings of $1.23 per share, which deteriorated from the year-ago quarter’s earnings of $1.37.
The company reported adjusted earnings of $6.62 for full-year 2021, which increased from $5.83 reported in 2020. The full-year earnings missed the Zacks Consensus Estimate of $6.63 per share by a whisker.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings generated total revenues of $3,491 million in the quarter under consideration, missing the Zacks Consensus Estimate of $3,506 million by 0.4%.
The top line however improved 7.3% year over year. This increase in revenues was primarily attributable to growth from its Defense Solutions and Health segments.
In 2021, Leidos Holdings generated revenues worth $13.74 billion, up 11.7% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $13.75 billion.
Backlog
At the end of 2021, the company’s total backlog was $34.46 billion, up 8% from 2020. Of this, $7.45 billion was funded.
Operational Statistics
The total cost of revenues in the quarter increased 8% to $2,983 million.
Operating income totaled $270 million compared with the year-ago quarter’s income of $290 million.
The operating income margin for the quarter was 7.7% compared with 9.2% in the prior-year quarter.
Interest expenses were $46 million, flat year over year.
Segmental Performance
Defense Solutions: Net revenues in this segment improved 6.9% year over year to $2,061 million in the fourth quarter. This upside can be primarily attributed to the ramp-up of the Navy NGEN-R SMIT contract and other recent contract wins.
The segment’s operating income declined to $140 million from the year-ago quarter’s $147 million, with the operating margin being 6.8%.
Health: The segment recorded revenues of $630 million in the fourth quarter, which soared 22.8% year over year. The uptick was driven by the increase in medical examinations after the pause from the COVID-19 pandemic as well as increased volumes on the Defense Healthcare Management System Modernization (DHMSM) program. Also, the ramp-up of new programs such as the Military and Family Life Counseling (MFLC) program contributed to the unit’s top line.
Operating income was $103 million compared with the year-ago quarter’s income of $86 million. The operating margin came in at 16.3%.
Civil: Revenues in this segment amounted to $800 million, down 1.4%. The revenue decline was on account of lower deliveries of security products.
While operating income improved from $61 million to $89 million, the adjusted operating margin was 7.6%.
Financials
Cash and cash equivalents as of Dec 31, 2021, was $727 million compared with $524 million as of Jan 1, 2021.
Long-term debt, net of current portion, amounted to $4,593 million as of Dec 31, 2021 compared with $4,644 million as of Jan 1, 2021.
Net cash provided by operating activities in 2021 was $1,031 million compared with $1,334 million a year ago.
2022 Guidance
Leidos Holdings offered its 2022 view. The company currently expects to generate adjusted earnings in the range of $6.10-$6.50 per share. The Zacks Consensus Estimate for 2022 earnings, pegged at $6.80 per share, is higher than the company’s new view.
Leidos Holdings currently expects its revenues to be in the range of $13.9-$14.3 billion. The Zacks Consensus Estimate for 2022 revenues, pegged at $14.41 billion, is above the guided range.
The company’s cash flow from operating activities is anticipated to be at or above $1 billion.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #4 (Sell).
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9.6%. The Zacks Consensus Estimate for GD’s 2022 earnings per share (EPS) indicates year-over-year growth of 5.3%.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for RTX’s 2022 EPS indicates year-over-year growth of 12.2%.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 17.5%.
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Leidos Holdings (LDOS) Q4 Earnings Miss, Revenues Rise Y/Y
Leidos Holdings, Inc.’s (LDOS - Free Report) fourth-quarter 2021 adjusted earnings of $1.56 per share missed the Zacks Consensus Estimate of $1.60 by 2.5%. The bottom line also declined 4.3% from $1.63 per share registered a year ago.
The company reported GAAP earnings of $1.23 per share, which deteriorated from the year-ago quarter’s earnings of $1.37.
The company reported adjusted earnings of $6.62 for full-year 2021, which increased from $5.83 reported in 2020. The full-year earnings missed the Zacks Consensus Estimate of $6.63 per share by a whisker.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings, Inc. price-consensus-eps-surprise-chart | Leidos Holdings, Inc. Quote
Total Revenues
Leidos Holdings generated total revenues of $3,491 million in the quarter under consideration, missing the Zacks Consensus Estimate of $3,506 million by 0.4%.
The top line however improved 7.3% year over year. This increase in revenues was primarily attributable to growth from its Defense Solutions and Health segments.
In 2021, Leidos Holdings generated revenues worth $13.74 billion, up 11.7% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $13.75 billion.
Backlog
At the end of 2021, the company’s total backlog was $34.46 billion, up 8% from 2020. Of this, $7.45 billion was funded.
Operational Statistics
The total cost of revenues in the quarter increased 8% to $2,983 million.
Operating income totaled $270 million compared with the year-ago quarter’s income of $290 million.
The operating income margin for the quarter was 7.7% compared with 9.2% in the prior-year quarter.
Interest expenses were $46 million, flat year over year.
Segmental Performance
Defense Solutions: Net revenues in this segment improved 6.9% year over year to $2,061 million in the fourth quarter. This upside can be primarily attributed to the ramp-up of the Navy NGEN-R SMIT contract and other recent contract wins.
The segment’s operating income declined to $140 million from the year-ago quarter’s $147 million, with the operating margin being 6.8%.
Health: The segment recorded revenues of $630 million in the fourth quarter, which soared 22.8% year over year. The uptick was driven by the increase in medical examinations after the pause from the COVID-19 pandemic as well as increased volumes on the Defense Healthcare Management System Modernization (DHMSM) program. Also, the ramp-up of new programs such as the Military and Family Life Counseling (MFLC) program contributed to the unit’s top line.
Operating income was $103 million compared with the year-ago quarter’s income of $86 million. The operating margin came in at 16.3%.
Civil: Revenues in this segment amounted to $800 million, down 1.4%. The revenue decline was on account of lower deliveries of security products.
While operating income improved from $61 million to $89 million, the adjusted operating margin was 7.6%.
Financials
Cash and cash equivalents as of Dec 31, 2021, was $727 million compared with $524 million as of Jan 1, 2021.
Long-term debt, net of current portion, amounted to $4,593 million as of Dec 31, 2021 compared with $4,644 million as of Jan 1, 2021.
Net cash provided by operating activities in 2021 was $1,031 million compared with $1,334 million a year ago.
2022 Guidance
Leidos Holdings offered its 2022 view. The company currently expects to generate adjusted earnings in the range of $6.10-$6.50 per share. The Zacks Consensus Estimate for 2022 earnings, pegged at $6.80 per share, is higher than the company’s new view.
Leidos Holdings currently expects its revenues to be in the range of $13.9-$14.3 billion. The Zacks Consensus Estimate for 2022 revenues, pegged at $14.41 billion, is above the guided range.
The company’s cash flow from operating activities is anticipated to be at or above $1 billion.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
General Dynamics (GD - Free Report) reported fourth-quarter 2021 earnings from continuing operations of $3.39 per share, which beat the Zacks Consensus Estimate of $3.37 by 0.6%.
General Dynamics’ long-term earnings growth is projected at 9.6%. The Zacks Consensus Estimate for GD’s 2022 earnings per share (EPS) indicates year-over-year growth of 5.3%.
Raytheon Technologies’ (RTX - Free Report) fourth-quarter 2021 adjusted EPS of $1.08 outpaced the Zacks Consensus Estimate of $1.01 by 6.9%.
Raytheon Technologies’ long-term earnings growth is projected at 10.2%. The Zacks Consensus Estimate for RTX’s 2022 EPS indicates year-over-year growth of 12.2%.
Lockheed Martin (LMT - Free Report) reported fourth-quarter 2021 adjusted earnings of $7.24 per share, which surpassed the Zacks Consensus Estimate of $7.23 by 0.1%.
Lockheed Martin’s long-term earnings growth is projected at 3.6%. The Zacks Consensus Estimate for LMT’s 2022 EPS indicates year-over-year growth of 17.5%.