Leidos Reports Third Quarter FY2020 Results; Roger Krone Quoted

Leidos Reports Third Quarter FY2020 Results; Roger Krone Quoted
Roger Krone Chairman

Leidos Holdings has published financial results for the third quarter of fiscal year 2020, reporting revenues of $3.24 billion, compared to $2.84 billion in the prior year quarter, the company announced on Monday. 

The company’s revenues for the quarter included $302 million and $74 million related to the acquisitions of Dynetics, Inc. and L3Harris Technologies' security detection and automation (SD&A) businesses, respectively.

"Leidos' third quarter results reflect the hard work and dedication of our employees and close collaboration with our customers as we provided continuity of operations while accelerating our pandemic response plan. This is evidenced by record revenue, solid margins, record backlog and record operational cash generation in the recent quarter,” said Roger Krone, Leidos chairman, CEO, and 2020 Wash100 Award recipient. 

Leidos’ operating income for the quarter was $258 million, compared to $249 million in the prior year quarter, increasing 3.6 percent. Operating income margin decreased to 8.0 percent from 8.8 percent in the prior year quarter. 

The company’s non-GAAP operating income margin for the quarter was ten percent, compared to 10.4 percent in the prior year quarter. Diluted earnings per share (EPS) for the quarter was $1.13, compared to $1.11 in the prior year quarter.

Non-GAAP diluted EPS for the quarter was $1.47, compared to $1.36 in the prior year quarter. The weighted average diluted share count for the quarter was 144 million compared to 145 million in the prior year quarter.

Leidos’ Defense Solutions Business revenues for the quarter increased by $357 million, 22.4 percent, compared to the prior year quarter. The company’s Civil Unit revenues for the quarter were $771 million, increasing 5.2 percent compared to the prior year quarter. 

Health revenues for the quarter of $520 million increased by $12 million, compared to the prior year quarter. Net cash provided by operating activities for the quarter was $592 million compared to $349 million in the prior year quarter. Net bookings totaled $4.3 billion in the quarter, representing a book-to-bill ratio of 1.3.

“While challenges still remain, we are pleased with the growth and margin trajectory as we enter the fourth quarter and beyond," Krone concluded. 

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