Leidos Registers 4% Revenue Growth In Q3 Aided By Defense, Civil, Health Segments

Leidos Holdings, Inc LDOS reported third-quarter FY22 revenue growth of 4% year-on-year to $3.61 billion, beating the consensus of $3.56 billion. Revenue grew 4% organically.
The most significant revenue contributors were the Navy Next Generation Enterprise Network Recompete (NGEN-R) Service Management, Integration and Transport (SMIT) contract; the ramp-up of the National Aeronautics and Space Administration (NASA) Advanced Enterprise Global Information Technology Solutions (AEGIS) contract; and increased deployments on the Defense Healthcare Management System Modernization (DHMSM) program.
Defense Solutions' revenue rose 3% Y/Y to $2.08 billion. Civil revenue grew 10% Y/Y to $874 million. Health revenue expanded 3% Y/Y to $659 million.
Net bookings totaled $4.1 billion, representing a book-to-bill ratio of 1.1. As a result, the backlog was $35 billion.
The adjusted EBITDA margin contracted by 130 bps to 10.3%.
Non-GAAP EPS of $1.59 beat the consensus of $1.57.
Leidos held $807 million in cash and equivalents and generated $721 million in free cash flow.
Outlook: Leidos boosted FY22 revenue guidance to $14.2 billion - $14.4 billion, up from $13.9 billion - $14.3 billion, versus the consensus of $14.23 billion.
Leidos sees non-GAAP EPS of $6.20 - $6.40, against the prior $6.10 - $6.50 versus the consensus of $6.36.
Price Action: LDOS shares traded higher by 1.89% at $103.51 on the last check Tuesday.
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