Overview

* Leidos ( LDOS ) Q3 revenue grows 7% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, rising 4% yr/yr

* Company raises full-year earnings and margin guidance despite government shutdown

Outlook

* Leidos ( LDOS ) raises FY25 non-GAAP EPS guidance to $11.45-$11.75

* Company maintains FY25 revenue guidance at $17.00-$17.25 bln

* Leidos ( LDOS ) expects FY25 adjusted EBITDA margin in high 13% range

Result Drivers

* CUSTOMER DEMAND - Revenue growth driven by increased demand for national security and defense solutions

* HEALTH SERVICES - Increased profitability in Health & Civil segment due to high volumes and timing of incentive awards

* COST MANAGEMENT - High profitability maintained through cost management and award performance despite increased legal reserves

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $4.47 $4.28

Revenue bln bln (13

Analysts

)

Q3 Beat $3.05 $2.71

Adjusted (12

EPS Analysts

)

Q3 EPS $2.82

Q3 Net $369 mln

Income

Q3 NET $5.90

BOOKINGS bln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Leidos Holdings Inc ( LDOS ) is $200.00, about 3.5% above its November 3 closing price of $193.05

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)