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LDOS NYSE· Leidos Holdings Inc.
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LDOS NYSE· Leidos Holdings Inc.
Earnings report Q4 2023

Leidos Holdings Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Leidos Holdings reported total revenues of $15.44 billion, representing a 7% increase compared to the same quarter last year. The company's revenue growth was driven by solid performance across its segments.

  • Defense Solutions: Revenues for the Defense Solutions segment reached $8.73 billion, reflecting a 6% increase compared to the previous year. This growth was primarily attributed to program wins, increased volumes on certain programs, and the positive impact of the Cobham Special Mission acquisition made in the last quarter of the previous fiscal year.

  • Civil: The Civil segment generated revenues of $3.57 billion, indicating a steady performance compared to the previous year.

  • Health: The Health segment reported revenues of $3.04 billion, showing no significant change compared to the previous year.

Strengths

Leidos Holdings demonstrated several strengths in its latest quarter. The company's overall revenue growth of 7% was driven by program wins, increased volumes on certain programs, and the positive impact of an acquisition. These factors highlight the company's ability to secure new contracts and expand its business. Additionally, Leidos Holdings maintained a solid operating margin of 4.0%, indicating efficient cost management.

Challenges

While Leidos Holdings achieved overall revenue growth, the Civil and Health segments did not experience significant increases in revenue compared to the previous year. This suggests potential challenges in these segments, which may require further analysis to identify the underlying factors impacting their performance.

Noteworthy

Leidos Holdings' revenue growth in the latest quarter was primarily driven by program wins, increased volumes, and the positive impact of an acquisition. The completion of certain contracts and unfavorable net impact from exchange rate movements partially offset the revenue increase. It is worth noting that the company's operating income decreased by 43% compared to the previous year, which may indicate challenges in managing costs or other factors affecting profitability.

Summary

Leidos Holdings reported strong revenue growth of 7% in the latest quarter, driven by program wins, increased volumes, and the positive impact of an acquisition. The Defense Solutions segment performed particularly well, while the Civil and Health segments showed limited revenue growth. The company's ability to secure new contracts and efficiently manage costs contributed to its overall positive performance. However, the decrease in operating income raises potential concerns that should be further investigated.

Source documents

Form 10-K  filed on Feb 13, 2024
76 pages scanned

Reference data

Company financials Q4 revenue 3.98B
Analyst estimates Q4 EPS beat by 19.42%
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