Leidos (NYSE: LDOS) reported strong top- and bottom-line results in the first quarter of 2024. The provider of scientific, engineering, systems integration and technical services to clients in the national security, engineering, and health sectors also raised its full-year guidance.
Thomas Bell, CEO of Leidos and a 2024 Wash100 awardee, said in a statement published Tuesday, âOur strong start to the year demonstrates the team’s ability to deliver for its employees, customers, and shareholders.â
He disclosed that management is raising guidance on all metrics, given the greater visibility on customer funding and performance surpassing the plan. âWe fully expect that 2024 will showcase our commitment to profitable growth,â Bell added.
In the three months ended March 29, 2024, revenue increased 7.5 percent to $3.97 billion compared to Q1 fiscal 2023, while net income jumped 72.6 percent year-over-year to $283 million. The increased demand across all customer segments, particularly managed health services, drove revenue growth.
Adjusted EBITDA rose 42 percent to $490 million from a year ago, while the 12.3 percent adjusted EBITDA margin was a record for the defense vendor. At the quarterâs end, the total backlog was $36.6 billion, of which $8 billion was funded.
Leidos Chief Financial Officer Chris Cage said during the earnings call that strong top-line growth in the first quarter enabled the company to achieve record profitability and that the bottom-line performance boosted cash flows, helping enable Leidos to continue business reinvesting to support longer-term strategic objectives.
According to Cage, the full-year guidance increased by $300 million to the range based on the strong Q1 and improved outlook. The adjusted revenue forecast is between $16 billion and $16.4 billion.
The Leidos stock was among the top performers Tuesday, advancing 6.53 percent as major U.S. indexes tumbled due to elevated market volatility. Besides the 191.3 percent increase in trading volume, its share price hit an all-time high of $140.91 in intra-day trading before closing lower at $140.22. As of this writing, Leidos investors are up 29.93 percent year-to-date.
