Leidos Holdings, Inc. (LDOS), headquartered in Reston, Virginia, is a global leader in technology, engineering, and science solutions, delivering innovative services and systems that empower enterprises to tackle complex challenges. With a market cap of $20.7 billion, Leidos leverages advanced technologies to drive progress across defense, healthcare, and civil operations. The company is set to release its Q4 earnings before the market opens on Tuesday, Feb. 11.
Ahead of the event, analysts expect LDOS to report a profit of $2.18 per share on a diluted basis, up 9.6% from $1.99 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
The company reported an adjusted EPS of $2.93 in the most recent quarter, surpassing the consensus estimates by 49.5%. Leidos' strong quarterly performance was driven by robust demand in the defense and civil sectors, operational efficiencies, and successful project execution.
For the full year, analysts expect LDOS to report EPS of $10.03, up 37.4% from $7.30 in fiscal 2023. Its EPS is expected to rise 2.6% year over year to $10.29 in fiscal 2025.
Leidos Holdings’ shares have gained 42.6% over the past 52 weeks, significantly outperforming the broader S&P 500 Index's ($SPX) 24.6% gains and the Technology Select Sector SPDR Fund's (XLK) 19.6% returns over the same time frame.
Leidos’ shares surged 9.5% following its strong Q3 results on Oct. 29. The company reported $4.19 billion in revenue, representing a 6.9% year-over-year increase and a 3% beat over consensus estimates. Full-year revenue guidance was raised to $16.4 billion at the midpoint, reflecting confidence in continued growth. Margins showed notable improvement, with gross margin increasing to 18.2%, operating margin reaching 12.3%, and EBITDA margin expanding to 14.2%.
Analysts’ consensus opinion on LDOS stock is cautiously optimistic, with a “Moderate Buy” rating overall. Of 14 analysts covering the stock, nine advise a “Strong Buy” rating, and five give a “Hold.” LDOS’ average analyst price target is $183.64, indicating a potential upside of 18.4% from the current levels.
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