RESTON, VA – Leidos Holdings , Inc. (NYSE:LDOS), a prominent company in the computer integrated systems design industry with a market capitalization of $20.4 billion and a "GOOD" financial health rating according to InvestingPro, announced today that Gerard A. Fasano, its Chief Growth Officer, plans to retire on April 4, 2025. Fasano's decision to retire will bring to a close a career spanning more than four decades.
The announcement came through a current report on Form 8-K filed with the Securities and Exchange Commission on Tuesday, January 14, 2025. The company has not yet named a successor to Fasano, whose leadership role has been integral to Leidos' growth strategy.
Fasano has been with Leidos, formerly known as SAIC, Inc., for a significant portion of his career. His contributions have been instrumental in shaping the company's direction and expansion in the technology sector. The planned departure date allows for a transition period during which the company can manage the change in leadership without immediate disruption.
Leidos, headquartered in Reston, Virginia, is known for its work in providing solutions in defense, intelligence, civil, and health markets. The company has demonstrated strong performance with a 40% return over the past year and maintains a solid dividend track record, having raised dividends for 6 consecutive years.
The company's shares are traded on the New York Stock Exchange under the ticker symbol LDOS. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in their comprehensive Pro Research Report.
The information contained in this news article is based on the press release statement from the SEC filing by Leidos Holdings, Inc. The company has yet to disclose further details regarding the transition or any potential impacts on its operations. Investors and industry watchers will be looking forward to updates on the company's plans to fill the upcoming vacancy in its executive team.
This retirement marks a significant change in the executive suite of Leidos and highlights the natural cycle of leadership turnover within major corporations.
With revenue of $16.3 billion in the last twelve months and a healthy 16.6% gross profit margin, the company's forthcoming decisions regarding Fasano's replacement will be closely watched, as the Chief Growth Officer position is critical for maintaining the momentum in Leidos' strategic initiatives. Discover more detailed financial metrics and exclusive insights about Leidos and 1,400+ other stocks with InvestingPro's comprehensive research tools.
In other recent news, Leidos Holdings reported a 7% increase in revenue, reaching $4.19 billion in Q3 2024, marking its sixth consecutive quarter of growth. This positive development led the company to raise its 2024 revenue guidance to between $16.35 billion and $16.45 billion. Leidos has also secured significant contracts, including a $987 million contract from the U.S. Air Force Life Cycle Management Center for F-16 support services, a $107 million contract from the National Geospatial-Intelligence Agency for geospatial intelligence products, and a potential $235 million contract to modernize the Organ Procurement and Transplant Network.
However, TD (TSX:TD) Cowen downgraded Leidos' stock to Hold, citing a projected period of lower growth after a year of significant expansion. Goldman Sachs (NYSE:GS) also downgraded Leidos' shares from Buy to Neutral, revising the price target to $153. Despite these downgrades, UBS and JPMorgan (NYSE:JPM) initiated coverage on Leidos with a Neutral rating, with JPMorgan revising its price target to $205, up from $185.
In other developments, Leidos' shares saw a positive market response following Elon Musk's comments on his government efficiency panel's ability to achieve budget cuts. This led to a rise in government-services stocks, including Leidos, which increased by 1.8%.
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