On August 4, Leidos rose 6.97% in pre-market trading, trading at $122.0/share. The move was driven by the company reporting Q2 results that significantly exceeded Wall Street expectations.
Leidos posted Q2 adjusted EPS of $3.26, beating the analyst consensus of $2.91 by 12.03%, while revenue of $4.558 billion topped the $4.437 billion estimate. The company also narrowed its full-year adjusted EPS guidance to $12.20-$12.50, raising the lower bound from the prior $12.10, versus the FactSet consensus of $12.33. The earnings beat follows a string of consecutive quarters outperforming estimates, with Q1 EPS of $3.13 also having surpassed the $2.90 consensus.
The results come amid a robust contract pipeline, including a recently awarded $717 million US Air Force task order for intelligence and reconnaissance support, and a $64.8 million Naval Intelligence IT modernization contract. The strong execution contrasts with analyst caution earlier this year, when multiple brokerages cut price targets citing healthcare portfolio uncertainty and DOGE-related defense spending concerns.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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