Leidos Q2: 7% Revenue Growth, Higher Demand, Raised FY23 Topline Guidance & More

Leidos Holdings, Inc. LDOS reported second-quarter FY23 revenue growth of 6.7% year-over-year to $3.838 billion, beating the consensus of $3.726 billion. 

Adjusted EPS for the quarter was $1.80, up 13% year-over-year, beating the consensus of $1.55.

Revenues grew year-over-year primarily due to increased demand across all customer segments, especially for digital modernization, hypersonics, and medical examination solutions.

Also Read: Leidos Invests ~$32M In New Manufacturing Facility In South Carolina

Non-GAAP net income was $252 million for the second quarter, up 15% year-over-year.

Adjusted EBITDA was $420 million for Q2, up 15% year-over-year. Adjusted EBITDA margin of 10.9% increased from 10.2% in the second quarter of 2022. 

Net bookings totaled $2.9 billion in Q2, representing a book-to-bill ratio 0.8. 

As a result, the backlog at the end of the quarter was $34.2 billion, of which $8.3 billion was funded. 

Leidos held $329 million in cash and equivalents by the end of the quarter.

"Propelling our future performance, we will remain dedicated to resolving with pace the most challenging problems faced by our customers, our nation, and its allies—an approach that distinctly sets Leidos apart," Thomas Bell, Leidos Chief Executive Officer, commented.

Outlook

Leidos Holdings raised FY23 revenue guidance to $14.9 billion-$15.2 billion (Prior view: $14.7 billion-$15.1 billion). The analyst consensus stands at $15.02 billion.

The company reiterated its FY23 adj EPS outlook of $6.40-$6.80 versus the $6.53 consensus.

Dividend

On July 28, 2023, the Leidos Board of Directors declared a cash dividend of $0.36 per share to be paid on September 29, 2023, to stockholders of record at the close of business on September 15, 2023.

Price Action: LDOS shares are trading higher by 0.62% at $94.11 premarket on the last checked Tuesday.