Leidos (NYSE:LDOS) Releases Earnings Results

Key Points

• Leidos beat earnings expectations: Quarterly EPS was $3.62, exceeding the $3.04 consensus, while revenue reached $4.63 billion, slightly below estimates but up 3.6% year over year.
• The company raised its quarterly dividend to $0.45 per share, or $1.80 annually, producing a 1.2% yield; Leidos also authorized repurchases of up to 20 million shares.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $150.85, while two directors recently sold shares.

Leidos (NYSE:LDOS - Get Free Report) released its quarterly earnings data on Monday. The aerospace company reported $3.62 earnings per share for the quarter, beating analysts' consensus estimates of $3.04 by $0.58, Zacks reports. The business had revenue of $4.63 billion during the quarter, compared to analyst estimates of $4.71 billion. Leidos had a return on equity of 30.81% and a net margin of 7.80%. The company's revenue was up 3.6% on a year-over-year basis. During the same quarter last year, the business posted $3.05 EPS.

Leidos Stock Performance

Shares of LDOS stock opened at $144.44 on Tuesday. The company has a market capitalization of $18.13 billion, a P/E ratio of 13.47, a P/E/G ratio of 1.55 and a beta of 0.55. The business's 50 day moving average is $129.38 and its two-hundred day moving average is $141.34. The company has a current ratio of 1.63, a quick ratio of 1.60 and a debt-to-equity ratio of 1.13. Leidos has a 12-month low of $98.86 and a 12-month high of $205.77.

Leidos Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, December 15th. This is a positive change from Leidos's previous quarterly dividend of $0.43. Leidos's payout ratio is currently 16.04%.

Wall Street Analyst Weigh In

LDOS has been the subject of several recent research reports. Royal Bank Of Canada decreased their price target on Leidos from $180.00 to $170.00 and set an "outperform" rating for the company in a report on Wednesday, August 5th. Wall Street Zen raised shares of Leidos from a "hold" rating to a "buy" rating in a research note on Thursday, July 16th. Wells Fargo & Company set a $165.00 target price on shares of Leidos in a report on Monday, August 17th. BNP Paribas Exane boosted their target price on shares of Leidos from $165.00 to $175.00 and gave the company an "outperform" rating in a research note on Wednesday, August 5th. Finally, The Goldman Sachs Group lowered their price target on shares of Leidos from $152.00 to $132.00 and set a "neutral" rating on the stock in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $150.85.

Leidos declared that its Board of Directors has initiated a share repurchase program on Friday, July 31st that allows the company to buy back 20,000,000 outstanding shares. This buyback authorization allows the aerospace company to purchase shares of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Noel B. Geer sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the transaction, the director owned 34,274 shares in the company, valued at $4,820,980.84. This trade represents a 22.59% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Gary May sold 1,000 shares of Leidos stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $140.85, for a total transaction of $140,850.00. Following the completion of the sale, the director directly owned 10,204 shares in the company, valued at $1,437,233.40. This represents a 8.93% decrease in their position. The SEC filing for this sale provides additional information. 0.77% of the stock is owned by insiders.

About Leidos

Leidos Holdings, Inc NYSE: LDOS is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.

The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.