Leidos Holdings has reported financial results for the second quarter of fiscal year 2020, noting that revenues were $2.91 billion, increasing 6.8 percent compared to 2019, the company announced on Tuesday.
"Leidos' second quarter results demonstrate the resiliency of our business model, the value of our market diversity and the strength of our team as we delivered on commitments through the most challenging quarter I have seen in my career,” said Roger Krone, Leidos chairman and CEO and seven-time Wash100 Award recipient.
Leidos’ revenues for the quarter included $206 million and $80 million related to the acquisitions of Dynetics and L3Harris Technologies' security detection and automation (SD&A) businesses, respectively.
The company reported that the operating income for the quarter was $249 million, compared to $210 million in the prior year quarter. The operating income margin increased to 8.5 percent from 7.7 percent in 2019.
Leidos’ non-GAAP operating income margin for the quarter was 11.2 percent, compared to 9.4 percent in the prior year quarter. The company’s diluted earnings per share (EPS) was $1.06, compared to $0.93 in the prior year quarter.
The non-GAAP diluted EPS for the quarter was $1.55, compared to $1.16 in the prior year quarter. Leidos’ weighted average diluted share count for the quarter was 144 million compared to 146 million in the prior year quarter.
Within Leidos’ Defense Solutions division, revenues for the quarter of $1,757 million increased by $197 million, compared to the prior year quarter, due to $206 million of revenues related to the acquisition of Dynetics and program wins.
Defense Solutions operating income margin for the quarter was 6.8 percent, compared to 7.2 percent in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 8.1 percent, compared to 8.3 percent in 2019.
Leidos’ Civil revenues for the quarter of $758 million increased by $91 million. The revenue increase was primarily attributable to $80 million of revenues related to the acquisition of the SD&A Businesses and program wins. The division’s operating income margin for the quarter was 10.3 percent, compared to 8.4 percent in the prior year quarter.
On a non-GAAP basis, operating income margin for the quarter was 12.9 percent, compared to 11.1 percent in 2019.
Leidos reported that its Health division revenues for the quarter were $399 million decreased by $102 million. The revenue decrease was primarily attributable to timing of program execution due to COVID-19, the impact from the sale of our health staff augmentation business in the third quarter of fiscal year 2019 and the completion of certain contracts.
Health operating income margin for the quarter was 0.3 percent, compared to 12.2 percent in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 5.3 percent, compared to 14.4 percent in the prior year quarter.
“We exited the second quarter with a strong business capture win rate, record-setting backlog, resilient cash position and improved capital structure. These factors galvanize our optimism for the future despite the extended effects of the current pandemic," Krone added.
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 37,000 employees support vital missions for government and commercial customers. Headquartered in Reston, Va., Leidos reported annual revenues of approximately $11.09 billion for the fiscal year ended January 3, 2020.
