Leidos Q4 Earnings: $7.6 Billion In Net Bookings, CEO Highlights Business Momentum And 2025 Outlook

Zinger Key Points

Leidos reports Q4 revenue of $4.37B, up 10% year over year, beating estimates with strong demand across all customer segments.
Leidos Q4 adjusted EPS rises 19% to $2.37, exceeding expectations as net bookings hit $7.6B with a 1.7 book-to-bill ratio
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On Tuesday, Leidos Holdings, Inc LDOS reported fourth-quarter fiscal 2024 revenue growth of 10% year-over-year to $4.37 billion, beating the analyst consensus estimate of $4.13 billion. Demand across all customer segments, especially for managed health services, drove the increase.

The defense, aviation, information technology and biomedical research, the company’s adjusted EPS was $2.37, up 19% year-over-year, beating the analyst consensus estimate of $2.27.

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Adjusted net income was $316 million for the quarter, up 14% year-over-year.

Adjusted EBITDA was $508 million, up 12% year over year. The margin of 11.6% increased from 11.4% a year ago.

Net bookings totaled $7.6 billion for the quarter, representing a book-to-bill ratio 1.7. As a result, the backlog at the end of the year was $43.6 billion, of which $8.4 billion was funded.

Leidos held $943 million in cash and equivalents as of January 3, 2025.

CEO Tom Bell said 2024 results came at or above the high end of its guidance range across all metrics, with the fourth quarter especially strong in revenue growth and business development. Also, its 2024 performance propelled the company beyond the three-year targets established at its 2021 Investor Day.

Outlook: Leidos expects fiscal 2025 revenue of $16.9 billion–$17.3 billion. The analyst consensus stands at $16.98 billion.

The company expects its fiscal 2024 adjusted EPS of $10.35–$10.75 versus the $10.58 consensus.

Leidos Holdings stock surged 25% in the last 12 months. However, at least three Wall Street firms cut their price target on the stock since December 2024, including two downgrades of ratings by Goldman Sachs and TD Cowen.

Price Action: LDOS stock is up 0.16% at $143.00 premarket at last check on Tuesday.

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