Leidos (NYSE:LDOS) Posts Quarterly Earnings Results, Beats Expectations By $0.35 EPS

Leidos (NYSE:LDOS) released its quarterly earnings data on Monday. The aerospace company reported $3.26 EPS for the quarter, topping analysts’ consensus estimates of $2.91 by $0.35, Zacks reports. The firm had revenue of $4.56 billion for the quarter, compared to the consensus estimate of $4.44 billion. Leidos had a return on equity of 31.92% and a net margin of 8.15%.The firm’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $3.21 earnings per share.

Leidos Stock Performance

LDOS traded up $10.12 during midday trading on Tuesday, reaching $128.84. The company’s stock had a trading volume of 1,134,922 shares, compared to its average volume of 1,303,693. The company has a current ratio of 1.40, a quick ratio of 1.29 and a debt-to-equity ratio of 1.19. The company has a fifty day simple moving average of $113.23 and a 200 day simple moving average of $145.90. The stock has a market cap of $16.21 billion, a P/E ratio of 11.78, a PEG ratio of 1.69 and a beta of 0.54. Leidos has a twelve month low of $98.86 and a twelve month high of $205.77.

Leidos Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a dividend of $0.43 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.72 annualized dividend and a yield of 1.3%. Leidos’s dividend payout ratio is presently 15.75%.

Leidos announced that its board has initiated a share buyback plan on Friday, July 31st that allows the company to repurchase 20,000,000 outstanding shares. This repurchase authorization allows the aerospace company to reacquire shares of its stock through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Leidos

In other news, Director Gary Stephen May sold 1,484 shares of the firm’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $132.75, for a total value of $197,001.00. Following the sale, the director owned 10,137 shares in the company, valued at approximately $1,345,686.75. This trade represents a 12.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.77% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Wexford Capital LP bought a new position in Leidos during the third quarter valued at about $32,000. DV Equities LLC acquired a new stake in shares of Leidos during the 4th quarter worth approximately $33,000. Wilkerson Advisory Group LLC acquired a new stake in shares of Leidos during the 4th quarter worth approximately $45,000. Kelleher Financial Advisors bought a new stake in shares of Leidos during the third quarter valued at approximately $46,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA raised its stake in shares of Leidos by 58.8% in the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 270 shares of the aerospace company’s stock valued at $51,000 after purchasing an additional 100 shares in the last quarter. Institutional investors own 76.12% of the company’s stock.

Leidos News Roundup

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Q2 earnings beat expectations: Non-GAAP EPS was $3.26, above the $2.91 consensus estimate and up from $3.21 a year earlier. Revenue rose 7% year over year to approximately $4.6 billion, also exceeding expectations. Leidos Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year revenue guidance improved: Leidos raised its fiscal 2026 revenue outlook to $18.2 billion-$18.4 billion from $18.0 billion-$18.4 billion. The EPS outlook remains $12.20-$12.50, with the midpoint slightly above the approximately $12.31 analyst consensus. Leidos Delivers Strong Second Quarter and Enhances Full-Year Guidance
• Positive Sentiment: Strong cash generation and backlog support visibility: Operating cash flow was $793 million, free cash flow was $761 million, and quarterly net bookings totaled $4.9 billion. Backlog reached $48.7 billion, including $10.2 billion funded, while the 1.1 book-to-bill ratio indicates bookings exceeded revenue. Leidos Q2 Revenue Rises 7 Percent
• Positive Sentiment: Additional defense-related contract momentum: Leidos was selected to supply infrared sensors and mission support for Sierra Space’s missile-defense satellites and received a U.S. Navy intelligence modernization contract worth up to $64.8 million. Leidos Selected for Missile Defense Satellites
• Neutral Sentiment: Dividend maintained: Leidos declared a quarterly dividend of $0.43 per share, payable September 30 to shareholders of record September 15.
• Negative Sentiment: GAAP profitability declined: Reported net income fell to $356 million from $393 million a year earlier, while net margin decreased to 7.8% from 9.2%. This contrasts with the adjusted EPS growth and may keep investors focused on cost pressures and earnings quality.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the stock. BNP Paribas Exane started coverage on shares of Leidos in a report on Wednesday, May 27th. They set an “outperform” rating and a $165.00 price target on the stock. Stifel Nicolaus lowered their target price on shares of Leidos from $205.00 to $193.00 and set a “hold” rating on the stock in a research report on Wednesday, May 6th. Weiss Ratings lowered Leidos from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 8th. Wells Fargo & Company set a $125.00 price target on Leidos in a research report on Wednesday, June 17th. Finally, Citigroup decreased their price target on Leidos from $178.00 to $138.00 and set a “buy” rating for the company in a research note on Wednesday, July 1st. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $163.80.

About Leidos

Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos’ work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.

Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.