Defense Stock Leidos Q2 Revenue Surges 8%, Raises Annual Outlook

Leidos Holdings, Inc LDOS reported second-quarter fiscal 2024 revenue growth of 8% year-over-year to $4.13 billion, beating the analyst consensus estimate of $4.06 billion, driven by demand across all customer segments, especially for managed health services. 

The defense, aviation, information technology, and biomedical research company’s adjusted EPS was $2.63, up 46% year over year, beating the analyst consensus estimate of $2.27.

Adjusted net income was $358 million for the quarter, up 43.8% year-over-year.

Adjusted EBITDA was $559 million, up 33% year over year. The margin of 13.5% increased from 10.9% a year ago. 

Net bookings totaled $4.0 billion for the quarter, representing a book-to-bill ratio of 1.0. As a result, the backlog at the end of the year was $36.5 billion, of which $8.0 billion was funded. 

Leidos held $823 million in cash and equivalents as of June 28, 2024.

CEO Thomas Bell commented, “Our collaborative innovation strategy and capabilities-based organization position us well to deliver on our commitments for the remainder of 2024 and beyond.”

Outlook: Leidos expects fiscal 2024 revenue of $16.1 billion-$16.4 billion (prior $16.0 billion – $16.4 billion). The analyst consensus stands at $16.25 billion.

The company expects its fiscal 2024 adjusted EPS of $8.60 – $9.00 (prior $8.40 – $8.80) versus the $8.82 consensus.

Leidos Holdings stock gained 64% in the last 12 months.

Price Action: LDOS shares are trading lower by 3.29% at $147.93 at the last check on Tuesday.