Leidos Q4 Revenue Forecast to Drop 1.2% to $4.31B
Leidos beat Q3 revenue expectations by 4.1%, reporting $4.47 billion (+6.7% YoY) and exceeded EBITDA and adjusted operating income forecasts. Analysts expect Q4 revenue to decline 1.2% YoY to $4.31 billion with adjusted EPS of $2.61, while defense peers showed mixed results and sector stocks rose 8.1% last month.
1. Recent Q3 Performance
Leidos reported Q3 revenue of $4.47 billion, up 6.7% year-over-year, beating consensus by 4.1%. The company also surpassed analysts’ EBITDA and adjusted operating income estimates, marking consecutive quarters of outperformance.
2. Q4 Earnings Forecast
For Q4, revenue is projected to decline 1.2% year-over-year to $4.31 billion, while adjusted EPS is forecast at $2.61. Analysts have largely maintained estimates over the past month, reflecting steady expectations ahead of the report.
3. Peer Comparisons
Mercury Systems delivered 4.4% revenue growth and beat estimates by 10.4% but saw its shares drop 22.3% post-report. RTX reported 12.1% revenue growth with a 7% beat, and its stock rose 2.7%, offering a mixed backdrop for Leidos.
4. Sector Trends and Analyst Targets
Defense contractors’ stocks have risen 8.1% on average over the last month, while Leidos shares declined 4.7% in the same period. The stock’s average analyst price target stands at $219.31 versus the current price of $180.03.