Defense contractor Leidos (NYSE: LDOS) will be announcing earnings results tomorrow before market hours. Here’s what to expect.
Leidos beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $4.37 billion, up 9.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ backlog and adjusted operating income 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 3.1% year on year to $4.10 billion, slowing from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.50 per share.
Analysts covering the company have generally 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 3.3% on average.
Looking at Leidos’s peers in the defense contractors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.8%, beating analysts’ expectations by 1.5%, and Lockheed Martin reported revenues up 4.5%, topping estimates by 1.1%. CACI traded up 7.9% following the results while Lockheed Martin was also up 1.1%.
Read our full analysis of CACI’s results here and Lockheed Martin’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 13% on average over the last month. Leidos is up 12% during the same time and is heading into earnings with an average analyst price target of $167.47 (compared to the current share price of $148.79).
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