## Leidos Holdings Soars Past Estimates with Strong Q3 Earnings, Driven by Managed Health Services Demand
Leidos Holdings, Inc. (LDOS) has announced impressive third-quarter fiscal 2024 results, exceeding analyst expectations with a 7% year-over-year revenue increase to $4.19 billion. This robust growth was driven by strong demand across all customer segments, particularly in managed health services, a key area of focus for the company.
The defense, aviation, information technology, and biomedical research company also saw significant gains in profitability. Adjusted earnings per share (EPS) reached $2.93, a 44% increase year-over-year, surpassing the analyst consensus estimate of $2.02. Adjusted net income for the quarter climbed to $396 million, representing a 40% year-over-year jump. The company’s strong performance extended to adjusted EBITDA, which reached $596 million, reflecting a 32% year-over-year increase. This translated to a margin of 14.2%, a notable improvement from 11.5% in the previous year.
Leidos’s strong performance is further highlighted by its impressive net bookings, which totaled $8.1 billion for the quarter. This translates to a book-to-bill ratio of 1.9, demonstrating a significant pipeline of future opportunities. As a result, the company’s backlog at the end of the quarter reached $40.6 billion, with $9.1 billion already funded.
Looking ahead, Leidos remains optimistic about its future performance. The company projects fiscal 2024 revenue to fall between $16.35 billion and $16.45 billion, slightly exceeding its previous guidance of $16.1 billion to $16.4 billion. The analyst consensus currently stands at $16.3 billion. Leidos also expects its fiscal 2024 adjusted EPS to be in the range of $9.80 to $10.00, a significant improvement from the previous guidance of $8.60 to $9.00. The analyst consensus for adjusted EPS is currently at $9.08.
The market responded positively to Leidos’s strong results. LDOS stock surged by 8.7% to $184.50 at the last check on Tuesday, further solidifying its impressive year-to-date performance of over 57%.
Overall, Leidos Holdings’ Q3 2024 results demonstrate a strong financial performance fueled by robust demand across its diverse customer base. The company’s focus on managed health services is proving to be a strategic advantage, driving both revenue and profitability. Leidos’s positive outlook and strong backlog position the company for continued success in the future.
