Defense contractor Leidos (NYSE: LDOS) will be announcing earnings results this Tuesday before market hours. Here’s what to look for.
Leidos missed analysts’ revenue expectations last quarter, reporting revenues of $4.21 billion, down 3.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ revenue estimates.
Is Leidos a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Leidos’s revenue to be flat year on year, slowing from the 6.8% increase it recorded in the same quarter last year.
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 rarely misses Wall Street’s revenue estimates.
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. General Dynamics delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 5.9%, and RTX reported revenues up 8.7%, topping estimates by 2.7%. General Dynamics traded up 9.5% following the results while RTX was down 7.6%.
Read our full analysis of General Dynamics’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 9.4% on average over the last month. Leidos is down 6.2% during the same time and is heading into earnings with an average analyst price target of $199.21 (compared to the current share price of $149.56).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
