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Dec 29, 2023
Leidos Q4 2023 Earnings Report
Leidos reported strong Q4 2023 results, exceeding guidance ranges with record top- and bottom-line performance.
Key Takeaways
Leidos Holdings, Inc. reported an 8% increase in revenue for the fourth quarter of 2023, reaching $3.98 billion. Diluted earnings per share increased by 30% to $1.66, and non-GAAP diluted earnings per share increased by 9% to $1.99. The company's focus on cost controls and cash generation contributed to exceeding guidance ranges.
Revenues for the fourth quarter were $3.98 billion, up 8% year-over-year.
Diluted earnings per share for the fourth quarter were $1.66, up 30% year-over-year.
Non-GAAP diluted earnings per share for the fourth quarter were $1.99, up 9% year-over-year.
Net bookings totaled $2.8 billion in the fourth quarter, representing a book-to-bill ratio of 0.7.
Revenue by Segment
Forward Guidance
Leidos is initiating fiscal year 2024 guidance with revenues between $15.7 - $16.1 billion, adjusted EBITDA margin in the mid-to-high 10% range, non-GAAP diluted EPS between $7.50 - $7.90, and cash flows provided by operating activities of approximately $1.1 billion.
Positive Outlook
- Revenues between $15.7 - $16.1 billion
- Adjusted EBITDA Margin in the mid-to-high 10% range
- Non-GAAP Diluted EPS between $7.50 - $7.90
- Cash Flows Provided by Operating Activities approximately $1.1 billion
Challenges Ahead
- Cash flows provided by operating activities reflects approximately $60 million of cash tax payments related to the Tax Cuts and Jobs Act of 2017 provision
- The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs Leidos will incur
- The actual impact on cash flows provided by operating activities will depend on whether Congress modifies or repeals this provision
- The actual impact on cash flows provided by operating activities will depend on whether new guidance and interpretive rules are issued by the US Treasury
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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