Leidos Holdings Beats On Q1 Earnings, Raises FY Guidance

Leidos Holdings Inc LDOS reported first-quarter FY21 revenue growth of 14.7% year-on-year to $3.32 billion, beating the analyst consensus of $3.25 billion. Organic revenue rose 8.9% due to program wins.
Defense Solutions revenues rose 14.8% to $1.958 billion; Civil revenues rose 17.1% to $766 million; and Health revenues rose 11.5% to $591 million.
Net bookings amounted to $3.8 billion, representing a book-to-bill ratio of 1.2. Backlog amounted to $32.6 billion.
Operating income rose 60.4% to $308 million, and the Non-GAAP operating margin expanded 260 basis points to 11.1%.
Non-GAAP EPS was $1.73, beating the analyst consensus of $1.48.
The company generated $239 million in operating cash flow and held $377 million in cash and equivalents.
It held $4.8 billion in debt.
Guidance: FY21 revenue guidance remained unchanged between $13.7 billion and $14.1 billion versus the analyst consensus of $13.88 billion. Non-GAAP EPS guidance was raised from $6.15 and $6.45 to $6.35 and $6.65 versus the analyst consensus was $6.38.
Adjusted EBITDA margin guidance was raised between 10.3% and 10.5% to 10.5% and 10.7%.
Price action: LDOS shares are up 0.26% at $103.97 on the last check Tuesday.

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