We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Impressive Contract Wins Aid Leidos (LDOS) Q2 Earnings?
Read MoreHide Full Article
Leidos Holdings, Inc.(LDOS - Free Report) is slated to report second-quarter 2022 results on Aug 2 before market open.
Leidos Holdings has a four-quarter earnings surprise of 3.22%, on average. Its second-quarter top line is likely to have been favorably impacted by certain contract wins, partially offset by margin headwinds.
Defense Solutions
The Gibbs & Cox acquisition must have contributed to the segment’s revenues in the second quarter. Also, favorable program wins might have added impetus to the revenues of the segment in the second quarter.
However, a net decrease in volumes from certain programs, the completion of a few contracts and the impact of a shift of certain contracts from Defense Solutions to the Civil segment are expected to have partially dampened revenues in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Defense Solutions’ second-quarter revenues, pegged at $2,069 million, suggests an improvement of 3.2% from the year-ago quarter’s reported figure.
Civil
A net increase in the program volume is expected to have positively impacted the revenues of the segment in the soon-to-be-reported quarter. Also, the shift of contracts fromDefense Solutions to the Civil segment might have benefited the revenues of the segment in the second quarter.
The Zacks Consensus Estimate for Civil’s second-quarter revenues, pegged at $819 million, suggests an improvement of 2.5% from the year-ago quarter’s reported figure.
Health
Increased volumes from higher-margin programs and solid net profit write-ups on certain programs are anticipated to have contributed to second-quarter revenues.
The Zacks Consensus Estimate for Health’s second-quarter revenues, pegged at $637 million, suggests a decrease of 1.2% from the year-ago quarter’s reported figure.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
With improved revenues projected from all Leidos Holdings’ segments, one might remain optimistic about the overall top line of the company.
The Zacks Consensus Estimate for second-quarter sales is pegged at $3.51 billion, indicating an increase of 1.9% from the prior-year reported figure.
A strong backlog and impressive contract awards for programs are expected to have aided the overall margins of the company in the second quarter. This, in turn, is likely to have contributed to LDOS’ bottom line. However, increased amortization expenses and legal costs might have dented the overall margin performance, thus negatively impacting the bottom line of the company.
The Zacks Consensus Estimate for second-quarter earningsis pegged at $1.55 per share, indicating an increase of 2% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Leidos Holdings this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Leidos Holdings has an Earnings ESP of 0.00% and a Zacks Rank 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three defense players you may want to consider as they have the right combination of elements to post an earnings beat this season:
Spire delivered an earnings surprise of 7.69% in the last reported quarter. The Zacks Consensus Estimate for SPIR’s second-quarter sales is pegged at $18.93 billion.
Huntington Ingalls Industries (HII - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #3. HII delivered a four-quarter average earnings surprise of 0.72%.
The Zacks Consensus Estimate for Huntington’s second-quarter earnings is pegged at $3.43 per share, indicating growth of 7.2% from the prior-year reported figure. The Zacks Consensus Estimate for Huntington’s second-quarter sales suggests growth of 18.3% from the prior-year reported figure.
Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 8.5%.
The Zacks Consensus Estimate for SPR’s second-quarter earnings indicates an improvement of 25.8% from the prior-year reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Will Impressive Contract Wins Aid Leidos (LDOS) Q2 Earnings?
Leidos Holdings, Inc.(LDOS - Free Report) is slated to report second-quarter 2022 results on Aug 2 before market open.
Leidos Holdings has a four-quarter earnings surprise of 3.22%, on average. Its second-quarter top line is likely to have been favorably impacted by certain contract wins, partially offset by margin headwinds.
Defense Solutions
The Gibbs & Cox acquisition must have contributed to the segment’s revenues in the second quarter. Also, favorable program wins might have added impetus to the revenues of the segment in the second quarter.
However, a net decrease in volumes from certain programs, the completion of a few contracts and the impact of a shift of certain contracts from Defense Solutions to the Civil segment are expected to have partially dampened revenues in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for Defense Solutions’ second-quarter revenues, pegged at $2,069 million, suggests an improvement of 3.2% from the year-ago quarter’s reported figure.
Civil
A net increase in the program volume is expected to have positively impacted the revenues of the segment in the soon-to-be-reported quarter. Also, the shift of contracts fromDefense Solutions to the Civil segment might have benefited the revenues of the segment in the second quarter.
The Zacks Consensus Estimate for Civil’s second-quarter revenues, pegged at $819 million, suggests an improvement of 2.5% from the year-ago quarter’s reported figure.
Health
Increased volumes from higher-margin programs and solid net profit write-ups on certain programs are anticipated to have contributed to second-quarter revenues.
The Zacks Consensus Estimate for Health’s second-quarter revenues, pegged at $637 million, suggests a decrease of 1.2% from the year-ago quarter’s reported figure.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings, Inc. price-consensus-eps-surprise-chart | Leidos Holdings, Inc. Quote
Second-Quarter Estimates
With improved revenues projected from all Leidos Holdings’ segments, one might remain optimistic about the overall top line of the company.
The Zacks Consensus Estimate for second-quarter sales is pegged at $3.51 billion, indicating an increase of 1.9% from the prior-year reported figure.
A strong backlog and impressive contract awards for programs are expected to have aided the overall margins of the company in the second quarter. This, in turn, is likely to have contributed to LDOS’ bottom line. However, increased amortization expenses and legal costs might have dented the overall margin performance, thus negatively impacting the bottom line of the company.
The Zacks Consensus Estimate for second-quarter earningsis pegged at $1.55 per share, indicating an increase of 2% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Leidos Holdings this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Leidos Holdings has an Earnings ESP of 0.00% and a Zacks Rank 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are three defense players you may want to consider as they have the right combination of elements to post an earnings beat this season:
Spire Global, Inc. (SPIR - Free Report) has an Earnings ESP of +9.43% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spire delivered an earnings surprise of 7.69% in the last reported quarter. The Zacks Consensus Estimate for SPIR’s second-quarter sales is pegged at $18.93 billion.
Huntington Ingalls Industries (HII - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #3. HII delivered a four-quarter average earnings surprise of 0.72%.
The Zacks Consensus Estimate for Huntington’s second-quarter earnings is pegged at $3.43 per share, indicating growth of 7.2% from the prior-year reported figure. The Zacks Consensus Estimate for Huntington’s second-quarter sales suggests growth of 18.3% from the prior-year reported figure.
Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +5.71% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 8.5%.
The Zacks Consensus Estimate for SPR’s second-quarter earnings indicates an improvement of 25.8% from the prior-year reported figure.