Leidos Surpasses Q4 Expectations, Eyes Solid Growth In 2024 With Revenue And EPS Surge

Leidos Holdings, Inc LDOS reported fourth-quarter FY23 revenue growth of 8% year-over-year to $3.98 billion, beating the consensus of $3.80 billion. 

The company clocked an adjusted EPS of $1.99, up 9% year-over-year, beating the consensus of $1.74.

Adjusted net income was $276 million for the quarter, up 8% year-over-year.

Adjusted EBITDA was $452 million, up 14% year-over-year. Adjusted EBITDA margin of 11.4% increased from 10.7% a year ago. 

Net bookings totaled $2.8 billion for the quarter, representing a book-to-bill ratio 0.7. 

As a result, the backlog at the end of the year was $37.0 billion, of which $8.8 billion was funded. 

Leidos held $777 million in cash and equivalents as of December 29, 2023.

CEO Tom Bell commented: “2024 is going to be another busy and exciting year for Leidos, as we capitalize on our leaner, more focused organizational structure and chart our path to our second decade of growth.”

Outlook: Leidos expects fiscal 2024 revenue of $15.70 billion-$16.10 billion. The analyst consensus stands at $15.96 billion.

The company expects its fiscal 2024 adjusted EPS of $7.50 – $7.90 versus the $7.60 consensus.

Price Action: LDOS shares are trading higher by 3.96% at $119.10 premarket on the last check Tuesday.