Leidos (NYSE:LDOS) Releases Quarterly Earnings Results, Beats Estimates By $0.59 EPS

Leidos (NYSE:LDOS) released its quarterly earnings results on Monday. The aerospace company reported $3.62 earnings per share for the quarter, beating the consensus estimate of $3.03 by $0.59, Zacks reports. The company had revenue of $4.63 billion for the quarter, compared to analyst estimates of $4.71 billion. Leidos had a return on equity of 30.81% and a net margin of 7.80%.

Leidos Price Performance

LDOS opened at $144.44 on Tuesday. The business has a fifty day moving average of $129.38 and a 200 day moving average of $141.34. The stock has a market cap of $18.13 billion, a P/E ratio of 13.47, a PEG ratio of 1.55 and a beta of 0.55. The company has a quick ratio of 1.60, a current ratio of 1.63 and a debt-to-equity ratio of 1.13. Leidos has a 52-week low of $98.86 and a 52-week high of $205.77.

Leidos Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 15th will be issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Tuesday, December 15th. This is an increase from Leidos’s previous quarterly dividend of $0.43. Leidos’s dividend payout ratio (DPR) is presently 16.04%.

Leidos declared that its board has initiated a share buyback plan on Friday, July 31st that allows the company to repurchase 20,000,000 outstanding shares. This buyback authorization allows the aerospace company to buy shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Leidos news, Director Noel Geer sold 10,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $140.66, for a total value of $1,406,600.00. Following the sale, the director owned 34,274 shares in the company, valued at $4,820,980.84. This trade represents a 22.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Gary May sold 1,000 shares of Leidos stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $140.85, for a total value of $140,850.00. Following the sale, the director owned 10,204 shares of the company’s stock, valued at approximately $1,437,233.40. This trade represents a 8.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.77% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on LDOS shares. Wells Fargo & Company set a $165.00 price objective on shares of Leidos in a research note on Monday, August 17th. Truist Financial reduced their target price on shares of Leidos from $195.00 to $160.00 and set a “buy” rating on the stock in a research note on Friday, July 10th. Royal Bank Of Canada lowered their target price on shares of Leidos from $180.00 to $170.00 and set an “outperform” rating for the company in a report on Wednesday, August 5th. Jefferies Financial Group dropped their price target on shares of Leidos from $145.00 to $130.00 and set a “hold” rating for the company in a research note on Tuesday, October 6th. Finally, JPMorgan Chase & Co. downgraded shares of Leidos from an “overweight” rating to a “neutral” rating and cut their price target for the company from $160.00 to $142.00 in a report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $150.85.

About Leidos

Leidos Holdings, Inc (NYSE: LDOS) is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.

The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.