- Leidos Holdings Inc (NYSE:LDOS) reported fourth-quarter FY21 revenue growth of 7% year-on-year to $3.49 billion, missing the consensus of $3.51 billion. Revenue grew 6% organically.
- The most significant revenue contributors were the increase in veterans' disability examinations after the pause from the pandemic and the start-up of the Navy NGEN-R SMIT contract.
- Defense Solutions' revenue rose 7% Y/Y to $2.06 billion. Civil revenue fell 1% at $800 million. Health revenue expanded 23% Y/Y to $630 million.
- Net bookings totaled $3.2 billion, representing a book-to-bill ratio of 0.9. As a result, the backlog was $34.5 billion.
- The adjusted EBITDA margin contracted by 100 bps to 10.3%.
- Non-GAAP EPS of $1.56 missed the consensus of $1.60.
- Leidos held $727 million in cash and equivalents and generated $210 million in operating cash flow.
- Dividend & Share Buyback: The board declared a cash dividend of $0.36 per share.
- The board also authorized a stock repurchase program of up to 20 million shares.
- Outlook: Leidos sees FY22 revenue of $13.9 billion - $14.3 billion, below the consensus of $14.38 billion.
- Leidos sees non-GAAP EPS of $6.10 - $6.50, below the consensus of $6.85.
- Price Action: LDOS shares closed lower by 1.83% at $87.36 on Monday.
