Leidos (LDOS) Reports Q3: Everything You Need To Know Ahead Of Earnings

October 28, 2024 at 03:10 AM EDT

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Defense contractor Leidos (NYSE:LDOS) will be announcing earnings results tomorrow before market open. Here’s what to look for.

Leidos beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $4.13 billion, up 7.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.

Is Leidos a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Leidos’s revenue to grow 3.7% year on year to $4.07 billion, slowing from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leidos has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.7% on average.

Looking at Leidos’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.2%, beating analysts’ expectations by 7%, and RTX reported revenues up 49.2%, topping estimates by 1.4%. CACI traded up 5.4% following the results while RTX’s stock price was unchanged.

Read our full analysis of CACI’s results here and RTX’s results here.

Investors in the defense contractors segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Leidos is up 3.9% during the same time and is heading into earnings with an average analyst price target of $175.84 (compared to the current share price of $169.42).

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