Leidos Holdings Inc (LDOS) Reports 9% Increase in Revenues for Q3 2023
Leidos Holdings Inc (NYSE:LDOS) reported a 9% year-over-year increase in revenues for Q3 2023, reaching $3.9 billion.
The company experienced a net loss of $396 million or $2.91 per diluted share.
Adjusted EBITDA rose to $451 million, marking an 11.5% margin.
Non-GAAP Diluted Earnings per Share increased by 28% year-over-year to $2.03.
Leidos Holdings Inc (NYSE:LDOS) released its earnings report for the third quarter of the fiscal year 2023 on October 31, 2023. The company reported revenues of $3.9 billion, marking a 9% increase from the same period last year. Despite this, the company experienced a net loss of $396 million or $2.91 per diluted share. Adjusted EBITDA for the quarter was $451 million, reflecting an 11.5% margin.
Financial Performance
Leidos Holdings Inc (NYSE:LDOS) reported a net loss of $396 million, or $2.91 per diluted share, for the third quarter, primarily due to pre-tax, non-cash impairment and restructuring charges of $699 million associated with the Security Enterprise Solutions (SES) reporting unit. This resulted in a 341% and 349% year-over-year decrease in net income and diluted EPS, respectively.
Despite the net loss, the company saw a 21% year-over-year increase in adjusted EBITDA, which reached $451 million. The adjusted EBITDA margin also rose from 10.3% in Q3 2022 to 11.5% in Q3 2023. Non-GAAP net income for the quarter was $283 million, up 28% year-over-year, and non-GAAP diluted EPS for the quarter was $2.03, up 28% year-over-year.
Cash Flow and Business Development
In Q3 2023, Leidos generated $795 million of net cash provided by operating activities and used $52 million in investing activities and $249 million in financing activities. The company's net bookings totaled $7.9 billion in the quarter, resulting in a backlog of $38.0 billion at the end of the quarter.
Outlook
Leidos is updating its fiscal year 2023 guidance, with revenues expected to be between $15.1 billion and $15.3 billion, adjusted EBITDA Margin between 10.5% - 10.7%, and Non-GAAP Diluted EPS between $6.80 - $7.10.
Summary of Financial Tables
The company's revenues for the quarter were $3.92 billion, up 9% compared to the third quarter of 2022. The net loss for the quarter was $396 million, or $2.91 per diluted share. Adjusted EBITDA was $451 million for the third quarter, up 21% year-over-year. Non-GAAP net income was $283 million for the third quarter, up 28% year-over-year, and non-GAAP diluted EPS for the quarter was $2.03, up 28% year-over-year.
As of September 29, 2023, Leidos had $750 million in cash and cash equivalents and $4.7 billion of debt. The company's net bookings for the quarter totaled $7.9 billion, representing a book-to-bill ratio of 2.0. As a result, the backlog at the end of the quarter was $38.0 billion, of which $9.0 billion was funded.
Explore the complete 8-K earnings release (here) from Leidos Holdings Inc for further details.
This article first appeared on GuruFocus.
