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Leidos Holdings (LDOS) Beats on Q1 Earnings, Keeps '17 View
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Leidos Holdings, Inc. (LDOS - Free Report) posted first-quarter 2017 adjusted earnings of 88 cents per share, beating the Zacks Consensus Estimate of 78 cents by 12.8%. Reported earnings also increased 22.2% from the year-ago figure of 72 cents.
Total Revenue
Leidos Holdings reported total revenue of $2,580 million in the first quarter, which surpassed the Zacks Consensus Estimate of $2,548.5 million by 1.2%. Reported revenues also improved 96.7% year over year.
Backlog
At the end of the first quarter, the company’s backlog of signed business orders was $16.9 billion, of which $4.9 billion was funded. Total backlog at the end of 2016 stood at $17.7 billion, of which $6 billion was funded.
Operational Statistics
Total cost of revenues in the quarter surged 96.7% to $2,270 million. Operating income was $141 million, compared with $89 million in the year-ago quarter.
Interest expenses were $34 million, up from $25 million in the year-ago quarter.
Segment Performance
Defense Solutions: Net sales at the segment improved 65.9% to $1,294 million from the prior-year figure of $780 million. Also, operating income improved to $79 million from the year-ago tally of $71 million, with operating margin contracting 300 basis points (“bps”) to 6.1%.
Health: The segment recorded net sales of $443 million in the reported quarter, up 159.1%. Operating income increased 193.8% to $47 million, while operating margin expanded 120 bps to 10.6%.
Civil: Net sales at the segment were $842 million, up 133.2%. Operating income grew 145.5% to $54 million, while operating margin was 6.4%.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Cash and cash equivalents as of Mar 31, 2017 were $206 million, compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the first quarter was $88 million, compared with outflow of $14 million a year ago.
Guidance
For 2017, the company reaffirmed its earnings in the range of $3.05 to $3.35.
Revenues are reiterated to be in between $10.0 billion and $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin is still anticipated in the range of 9.5−10.0%. The company also reiterated its projection of cash flows provided by operating activities from continuing operations to be $475 million or more.
Peer Releases
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017 (ended Mar 31, 2017). The company’s adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate of $1.31 by 2.3%. Reported earnings also grew 3.1% from $1.30 per share earned a year ago.
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate of $2.76 by 8.7%. Earnings came in line with the year-ago period’s bottom line figure.
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share in line with the Zacks Consensus Estimate.
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Leidos Holdings (LDOS) Beats on Q1 Earnings, Keeps '17 View
Leidos Holdings, Inc. (LDOS - Free Report) posted first-quarter 2017 adjusted earnings of 88 cents per share, beating the Zacks Consensus Estimate of 78 cents by 12.8%. Reported earnings also increased 22.2% from the year-ago figure of 72 cents.
Total Revenue
Leidos Holdings reported total revenue of $2,580 million in the first quarter, which surpassed the Zacks Consensus Estimate of $2,548.5 million by 1.2%. Reported revenues also improved 96.7% year over year.
Backlog
At the end of the first quarter, the company’s backlog of signed business orders was $16.9 billion, of which $4.9 billion was funded. Total backlog at the end of 2016 stood at $17.7 billion, of which $6 billion was funded.
Operational Statistics
Total cost of revenues in the quarter surged 96.7% to $2,270 million. Operating income was $141 million, compared with $89 million in the year-ago quarter.
Interest expenses were $34 million, up from $25 million in the year-ago quarter.
Segment Performance
Defense Solutions: Net sales at the segment improved 65.9% to $1,294 million from the prior-year figure of $780 million. Also, operating income improved to $79 million from the year-ago tally of $71 million, with operating margin contracting 300 basis points (“bps”) to 6.1%.
Health: The segment recorded net sales of $443 million in the reported quarter, up 159.1%. Operating income increased 193.8% to $47 million, while operating margin expanded 120 bps to 10.6%.
Civil: Net sales at the segment were $842 million, up 133.2%. Operating income grew 145.5% to $54 million, while operating margin was 6.4%.
Leidos Holdings, Inc. Price, Consensus and EPS Surprise
Leidos Holdings, Inc. Price, Consensus and EPS Surprise | Leidos Holdings, Inc. Quote
Financials
Cash and cash equivalents as of Mar 31, 2017 were $206 million, compared with $376 million as of Dec 30, 2016. Net cash outflow from operating activity in the first quarter was $88 million, compared with outflow of $14 million a year ago.
Guidance
For 2017, the company reaffirmed its earnings in the range of $3.05 to $3.35.
Revenues are reiterated to be in between $10.0 billion and $10.4 billion.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin is still anticipated in the range of 9.5−10.0%. The company also reiterated its projection of cash flows provided by operating activities from continuing operations to be $475 million or more.
Peer Releases
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017 (ended Mar 31, 2017). The company’s adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate of $1.31 by 2.3%. Reported earnings also grew 3.1% from $1.30 per share earned a year ago.
Pentagon’s prime contractor, Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate of $2.76 by 8.7%. Earnings came in line with the year-ago period’s bottom line figure.
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share in line with the Zacks Consensus Estimate.
Zacks Rank
Leidos Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>