Stock Story -
Defense contractor Leidos (NYSE:LDOS) will be reporting earnings tomorrow morning. Here's what you need to know.
Leidos beat analysts' revenue expectations by 4.1% last quarter, reporting revenues of $3.98 billion, up 7.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Leidos a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Leidos's revenue to grow 5.9% year on year to $4.06 billion, in line with the 6.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.27 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leidos has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.8% on average.
Looking at Leidos's peers in the defense contractors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Northrop Grumman (NYSE:NOC) delivered year-on-year revenue growth of 6.7%, beating analysts' expectations by 2%, and RTX (NYSE:RTX) reported revenues up 7.7%, topping estimates by 2.3%. Northrop Grumman traded up 8.6% following the results while RTX was also up 8.7%.
Read the full analysis of Northrop Grumman's and RTX's results on StockStory.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 10.9% on average over the last month. Leidos is up 2.9% during the same time and is heading into earnings with an average analyst price target of $163.9 (compared to the current share price of $149.75).
