Leidos Announces Fourth Quarter and FY2019 Results; Roger Krone Quoted

Leidos has reported financial results for the fourth quarter and fiscal year (FY) 2019 on Tuesday, citing the company’s exponential growth throughout the year. 

"We delivered strong fourth quarter results, including record organic revenue growth, increasing margins and significant year-over-year non-GAAP earnings growth. Our growth and execution momentum accelerated throughout 2019 and has continued into 2020 with significant new program wins and the opportunity to create value from our two recently announced acquisitions,” said Roger Krone, Leidos chairman, chief executive officer and seven-time Wash100 Award recipient.

Leidos’s reported revenues for the fourth quarter were $2.95 billion, compared to $2.65 billion in the prior year quarter and operating income for the quarter was $261 million, compared to $188 million in the prior year quarter.

Diluted earnings per share ("EPS") attributable to Leidos common stockholders for the quarter was $1.26, compared to $1.25 in the prior year quarter. Non-GAAP diluted EPS for the fourth quarter was $1.51 compared to $1.10 in the prior year quarter. 

Defense Solutions revenues for the quarter of $1.40 billion increased $135 million, or 10.7%, compared to the prior year quarter. Civil revenues for the quarter of $1.03 billion increased $143 million, or 16.2%, compared to the prior year quarter. 

Civil operating income margin for the quarter was 9.4%, compared to 7.1% in the prior year quarter. Health revenues for the quarter of $526 million increased $29 million, or 5.8%, as compared to the prior year quarter.

Revenues for FY2019 were $11.09 billion, compared to $10.19 billion in the prior year, reflecting an 8.8% increase and operating income for fiscal year 2019 was $912 million, compared to $749 million in 2018. 

Diluted EPS attributable to Leidos common stockholders for fiscal year 2019 was $4.60, compared to $3.80 for the prior year. Non-GAAP diluted EPS for fiscal year 2019 was $5.17, compared to $4.38 in the prior year. The diluted share count was 145 million compared to 153 million in the prior year.

Defense Solutions revenues of $5.37 billion for fiscal year 2019 increased $401 million, or 8.1%, compared to the prior year. Defense Solutions operating income margin for fiscal year 2019 was 7.6%, compared to 7.1% in the prior year. 

Civil revenues of $3.73 billion for fiscal year 2019 increased $318 million, or 9.3%, compared to the prior year. Civil operating income margin for fiscal year 2019 was 7.9%, compared to 8.3% in the prior year. Health revenues of $2.00 billion for fiscal year 2019 increased $181 million, or 10.0%, compared to the prior year.

“I am confident that we are growing the company with the right talent, the right capabilities and the right strategy to continue to drive value for our customers, employees and shareholders," Krone concluded.

About Leidos

Leidos is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil and health markets. The Company's 36,000 employees support vital missions for government and commercial customers.

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