We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Leidos Holdings to Report Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
Key Takeaways
{\"0\":\"Leidos is expected to post $4.23B in Q2 revenues, implying 2.4% year-over-year growth.\",\"1\":\"LDOS earnings are projected at $2.63 per share, matching last year\'s reported EPS. \",\"2\":\"The company backlog is forecast to climb 11.3% year over year to $40.61B in Q2.\"}
LDOS boasts a four-quarter average earnings surprise of 23.71%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Influence LDOS’ Q2 Results
Strong sales volumes from contracts won in prior quarters are likely to have boosted the National Security and Digital segment’s top-line performance in the second quarter. Positive synergy from the completion of the acquisition of Kudu Dynamics, a cyber company, must have also bolstered this unit’s revenues.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $1.86 billion, which indicates growth of 2.4% from the year-ago quarter’s figure.
Higher sales volumes, backed by increasing demand for the managed health services business, are likely to have boosted the Health & Civil segment’s top-line performance.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $1.28 billion, which indicates growth of 1.5% from the year-ago quarter’s figure.
Robust deliveries in the SES business, solid performance in commercial energy and increased volumes within the UK business may have boosted the Commercial & International unit’s top-line performance.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $584.3 million, which calls for an increase of 4.1% from the year-ago quarter’s figure.
Increased activity in space sensing and hypersonic programs, fueled by heightened geopolitical tensions worldwide, is likely to have boosted the Defense Systems’ top line.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $514.1 million, which indicates growth of 3.9% from the year-ago quarter’s figure.
The robust revenue performance in all four of its major business segments is likely to have bolstered LDOS’ overall top line.
The Zacks Consensus Estimate for revenues is pegged at $4.23 billion, indicating an increase of 2.4% from the year-ago level.
Solid sales growth expectations, along with a strong adjusted EBITDA margin, are likely to have contributed to the company’s bottom line. However, higher interest expenses owing to additional debt, as well as higher acquisition expenses involving the takeover of Kudu Dynamics, might have offset the positive impact of the factors benefiting second-quarter earnings.
The Zacks Consensus Estimate for earnings is pegged at $2.63 per share, which is in line with the figure recorded a year ago.
Backlog Projections Suggest LDOS’ Growth
Our model expects Leidos’ backlog to increase 11.3% year over year to $40.61 billion.
What the Zacks Model Unveils for LDOS
Our proven model predicts an earnings beat for LDOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: LDOS has an Earnings ESP of +1.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Below we have mentioned players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases.
Dynatrace (DT - Free Report) is slated to report its first-quarter fiscal 2025 results on Aug. 6, before market open. It has an Earnings ESP of +1.21% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for fiscal first-quarter sales is pegged at $466.1 million, which calls for a 16.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 38 cents per share.
CDW Corporation (CDW - Free Report) is scheduled to report its second-quarter 2025 results on Aug. 6, before market open. It has an Earnings ESP of +2.41% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $5.51 billion, which indicates a 1.6% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at $2.49 per share.
Genpact Limited (G - Free Report) is expected to report its second-quarter 2025 results on Aug. 7, after market close. It has an Earnings ESP of +0.78% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $1.23 billion, which implies a 4.6% increase from the year-ago quarter’s figure. The consensus estimate for earnings stands at 85 cents per share.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Leidos Holdings to Report Q2 Earnings: What's in the Cards?
Key Takeaways
Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release second-quarter 2025 results on Aug. 5, before market open.
LDOS boasts a four-quarter average earnings surprise of 23.71%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Influence LDOS’ Q2 Results
Strong sales volumes from contracts won in prior quarters are likely to have boosted the National Security and Digital segment’s top-line performance in the second quarter. Positive synergy from the completion of the acquisition of Kudu Dynamics, a cyber company, must have also bolstered this unit’s revenues.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $1.86 billion, which indicates growth of 2.4% from the year-ago quarter’s figure.
Higher sales volumes, backed by increasing demand for the managed health services business, are likely to have boosted the Health & Civil segment’s top-line performance.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $1.28 billion, which indicates growth of 1.5% from the year-ago quarter’s figure.
Robust deliveries in the SES business, solid performance in commercial energy and increased volumes within the UK business may have boosted the Commercial & International unit’s top-line performance.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $584.3 million, which calls for an increase of 4.1% from the year-ago quarter’s figure.
Increased activity in space sensing and hypersonic programs, fueled by heightened geopolitical tensions worldwide, is likely to have boosted the Defense Systems’ top line.
The Zacks Consensus Estimate for this segment’s revenues is pegged at $514.1 million, which indicates growth of 3.9% from the year-ago quarter’s figure.
Leidos Holdings, Inc. Price and EPS Surprise
Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote
Q2 Expectations for LDOS
The robust revenue performance in all four of its major business segments is likely to have bolstered LDOS’ overall top line.
The Zacks Consensus Estimate for revenues is pegged at $4.23 billion, indicating an increase of 2.4% from the year-ago level.
Solid sales growth expectations, along with a strong adjusted EBITDA margin, are likely to have contributed to the company’s bottom line. However, higher interest expenses owing to additional debt, as well as higher acquisition expenses involving the takeover of Kudu Dynamics, might have offset the positive impact of the factors benefiting second-quarter earnings.
The Zacks Consensus Estimate for earnings is pegged at $2.63 per share, which is in line with the figure recorded a year ago.
Backlog Projections Suggest LDOS’ Growth
Our model expects Leidos’ backlog to increase 11.3% year over year to $40.61 billion.
What the Zacks Model Unveils for LDOS
Our proven model predicts an earnings beat for LDOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: LDOS has an Earnings ESP of +1.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Leidos carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Below we have mentioned players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases.
Dynatrace (DT - Free Report) is slated to report its first-quarter fiscal 2025 results on Aug. 6, before market open. It has an Earnings ESP of +1.21% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for fiscal first-quarter sales is pegged at $466.1 million, which calls for a 16.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 38 cents per share.
CDW Corporation (CDW - Free Report) is scheduled to report its second-quarter 2025 results on Aug. 6, before market open. It has an Earnings ESP of +2.41% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $5.51 billion, which indicates a 1.6% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at $2.49 per share.
Genpact Limited (G - Free Report) is expected to report its second-quarter 2025 results on Aug. 7, after market close. It has an Earnings ESP of +0.78% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $1.23 billion, which implies a 4.6% increase from the year-ago quarter’s figure. The consensus estimate for earnings stands at 85 cents per share.