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Dec 30, 2022
Leidos Q4 2022 Earnings Report
Leidos reported strong Q4 2022 results, with revenue up 6% year-over-year and non-GAAP diluted EPS up 17% year-over-year.
Key Takeaways
Leidos Holdings, Inc. reported strong financial results for the fourth quarter and fiscal year 2022. The company's revenue for the fourth quarter was $3.7 billion, up 6% year-over-year, and the non-GAAP diluted EPS was $1.83, up 17% year-over-year. The company's performance was driven by its diversified and resilient portfolio and investments in technology and innovation.
Revenues for the fourth quarter were $3.7 billion, a 6% increase year-over-year.
Diluted earnings per share for the fourth quarter were $1.28, a 4% increase year-over-year.
Non-GAAP diluted earnings per share for the fourth quarter were $1.83, a 17% increase year-over-year.
Net bookings totaled $3.7 billion in the fourth quarter, representing a book-to-bill ratio of 1.0.
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 2023 guidance and expects growth in revenues and solid margin in line with long-term model.
Positive Outlook
- Revenues (billions): $14.7 - $15.1
- Adjusted EBITDA Margin: 10.3% - 10.5%
- Non-GAAP Diluted EPS: $6.40 - $6.80
- Cash Flows Provided by Operating Activities (millions): at or above $700
- Expects growth in revenues and solid margin in line with long-term model
Challenges Ahead
- Fiscal year 2023 guidance for cash flows provided by operating activities reflects approximately $300 million of additional cash taxes compared to fiscal year 2022
- Additional cash taxes primarily related to the Tax Cuts and Jobs Act of 2017 provision requiring the capitalization and amortization of research and development costs that went into effect on January 1, 2022.
- Leidos accrued, but did not pay the incremental 2022 cash taxes and now expects to make payments in 2023 to cover both the 2022 and 2023 tax amounts.
- The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs Leidos will incur.
- Impact will depend on whether Congress modifies or repeals this provision and 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