Leidos Holdings, Inc. Reports First Quarter Fiscal Year 2018 Results
Diluted Earnings per Share: $0.66
Non-GAAP Diluted Earnings per Share: $1.03
Net Bookings: $2.5 billion (book-to-bill ratio of 1.02)
RESTON, Va., May 3, 2018 – Leidos Holdings, Inc. (NYSE: LDOS), a global science and technology leader, today reported financial results for the first quarter of fiscal year 2018.
Roger Krone, Leidos Chairman and Chief Executive Officer, commented: "Our first quarter results demonstrate a strong start to the year, with notable performance in bookings, profitability and cash generation. These results reflect the power of the efficient and flexible cost structure behind our innovative technical solutions, and the unwavering commitment of our employees to deliver excellence in program performance and value to our customers. Book-to-bill was at the highest level of any first quarter in the last five years due to improved win rates and an enhanced business development engine. Strong bookings combined with a positive budgetary outlook bolster our ability to grow and deliver increased value to our customers, shareholders, and employees."
Revenues for the quarter were $2.44 billion, compared to $2.58 billion in the prior year quarter, reflecting a 5.3% decrease.
Operating income for the quarter was $159 million, compared to $141 million in the prior year quarter. Operating margin increased to 6.5% from 5.5% in the prior year quarter, primarily due to decreases in amortization of intangible assets, acquisition and integration costs and restructuring charges. Excluding these items, non-GAAP operating income margin for the quarter increased to 9.7% from 9.4% in the prior year quarter.
Diluted earnings per share ("EPS") attributable to Leidos common stockholders for the quarter was $0.66, compared to $0.47 in the prior year quarter. Excluding the items mentioned in the preceding paragraph, non-GAAP diluted EPS for the quarter was $1.03, compared to $0.88 in the prior year quarter. The weighted average diluted share count for the quarter was 154 million compared to 153 million in the prior year quarter.
Defense Solutions revenues for the quarter of $1,178 million decreased by $116 million, or 9.0%, compared to the prior year quarter. The revenue decrease was primarily attributable to timing of revenue recognition on certain contracts, the completion of certain contracts and net volume decreases, partially offset by revenues from new awards.
Defense Solutions operating income margin for the quarter was 7.2%, compared to 6.1% in the prior year quarter. On a non-GAAP basis, operating margin for the quarter was 8.7%, compared to 7.3% in the prior year quarter, due to stronger program performance on certain contracts.
Civil revenues for the quarter of $840 million decreased by $2 million, or 0.2%, compared to the prior year quarter. The revenue change was due to increased revenues from new awards and the favorable impact of foreign exchange rates. These were more than offset by net volume decreases and lower revenues from our international business due to the completion of a contractual deliverable in the prior year quarter.
Civil operating income margin for the quarter was 8.8%, compared to 6.4% in the prior year quarter. On a non-GAAP basis, operating income margin for the quarter was 11.8%, compared to 10.5% in the prior year quarter, reflecting stronger program performance on certain contracts.
The following information was filed by Leidos Holdings, Inc. (LDOS) on Thursday, May 3, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.