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Dec 31, 2021
Leidos Q4 2021 Earnings Report
Reported a 7% increase in revenue and a decrease in diluted EPS by 10% compared to the same quarter last year.
Key Takeaways
Leidos Holdings, Inc. reported Q4 2021 financial results, with revenues increasing by 7% year-over-year to $3.49 billion. Diluted earnings per share decreased by 10% to $1.23, while non-GAAP diluted earnings per share decreased by 4% to $1.56. The company's backlog at the end of fiscal year 2021 was $34.5 billion.
Revenues for the fourth quarter were $3.49 billion, up 7% year-over-year.
Diluted earnings per share for the fourth quarter were $1.23, down 10% year-over-year.
Non-GAAP diluted earnings per share for the fourth quarter was $1.56, down 4% year-over-year.
Net bookings totaled $3.2 billion, representing a book-to-bill ratio of 0.9.
Leidos
Leidos
Leidos Revenue by Segment
Revenue by Segment
Health & Civil Revenue
CapyFin.comDefense Systems Revenue
CapyFin.com Forward Guidance
Leidos is initiating fiscal year 2022 guidance with revenues between $13.9 - $14.3 billion, adjusted EBITDA margin between 10.3% - 10.5%, non-GAAP diluted EPS between $6.10 - $6.50, and cash flows provided by operating activities at or above $1.0 billion.
Challenges Ahead
- A provision of the Tax Cuts and Jobs Act of 2017 went into effect on January 1, 2022, that requires companies to capitalize and amortize research and development costs over five years rather than deducting such costs in the year incurred for tax purposes.
- Leidos currently estimates that cash flows provided by operating activities would decrease by approximately $150 million in fiscal 2022 if the provision remains in effect.
- Net deferred tax assets would increase by a similar amount if the provision remains in effect.
- The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs the Company will incur.
- The actual impact depends on whether Congress modifies or repeals this provision and on whether new guidance and interpretive rules are issued by the US Treasury, among other factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income