On April 30, 2024, Leidos Holdings Inc. (LDOS, Financial), a leader in technology, engineering, and science solutions, announced its first-quarter results for fiscal year 2024, revealing significant growth in revenue and profitability. The company's detailed financial performance can be viewed in its recent 8-K filing.
Leidos Holdings Inc. reported revenues of $3.98 billion for the quarter, marking a 7% increase from $3.70 billion in the same period last year, and surpassing the analyst's estimate of $3.82 billion. This growth was primarily fueled by increased demand across all customer segments, particularly in managed health services. Net income soared to $283 million, or $2.07 per diluted share, up from $164 million or $1.17 per diluted share year-over-year, significantly outperforming the estimated earnings per share of $1.70.
Financial Highlights and Operational Efficiency
The company's net income margin improved impressively to 7.1% from 4.4% in the prior year's quarter. Adjusted EBITDA also rose to $490 million, achieving a margin of 12.3%, compared to $346 million and a 9.4% margin last year. These figures reflect Leidos' effective cost control measures and operational efficiencies. Non-GAAP diluted EPS was $2.29, up 56% from $1.47 in the previous year, driven by higher volumes and stringent cost management.
Cash flow from operations was reported at $63 million, with free cash flow reaching $46 million after accounting for capital expenditures. The company's disciplined capital management is evident from its strategic share repurchases totaling $183 million and dividends paid amounting to $53 million during the quarter.
Strategic Developments and Forward Outlook
Leidos' strategic initiatives continue to bear fruit, as evidenced by net bookings of $3.7 billion during the quarter, translating into a book-to-bill ratio of 0.9. The company's backlog stood robust at $36.6 billion, of which $8.0 billion was funded, positioning it well for sustained future growth.
Encouraged by its strong quarterly performance, Leidos has raised its full-year 2024 guidance. The company now expects revenues to be between $16.0 billion and $16.4 billion, up from the previous forecast of $15.7 billion to $16.1 billion. Adjusted EBITDA margin guidance has also been lifted to the mid-to-high 11% range, and non-GAAP diluted EPS is projected to be between $8.40 and $8.80, significantly higher than the earlier range of $7.50 to $7.90.
Conclusion
Leidos Holdings Inc.'s first-quarter results demonstrate a strong trajectory for 2024, backed by solid revenue growth, enhanced profitability, and strategic capital allocation. The company's focus on operational execution and investment in technology-driven solutions are likely to continue driving its performance, making it a noteworthy entity for value investors seeking growth and stability in the technology and defense sectors.
For more detailed information about Leidos Holdings Inc.'s financials and strategic outlook, investors and interested parties are encouraged to refer to the full earnings report and supplementary materials available on the company's investor relations website.
Explore the complete 8-K earnings release (here) from Leidos Holdings Inc for further details.
