William Blair Issues Pessimistic Outlook for Leidos Earnings

Leidos Holdings, Inc. (NYSE:LDOS) – William Blair dropped their Q2 2025 earnings estimates for shares of Leidos in a report released on Tuesday, May 6th. William Blair analyst L. Dipalma now expects that the aerospace company will post earnings per share of $2.56 for the quarter, down from their prior estimate of $2.60. William Blair has a “Market Perform” rating on the stock. The consensus estimate for Leidos’ current full-year earnings is $10.62 per share. William Blair also issued estimates for Leidos’ Q3 2025 earnings at $2.61 EPS, Q4 2025 earnings at $2.54 EPS, FY2025 earnings at $10.69 EPS and FY2026 earnings at $11.63 EPS.

Several other equities analysts have also weighed in on LDOS. Royal Bank of Canada lifted their target price on shares of Leidos from $150.00 to $160.00 and gave the company a “sector perform” rating in a research note on Wednesday. StockNews.com lowered shares of Leidos from a “strong-buy” rating to a “buy” rating in a research note on Wednesday, April 30th. Truist Financial lowered their target price on shares of Leidos from $165.00 to $155.00 and set a “buy” rating on the stock in a research report on Monday, April 14th. Wells Fargo & Company boosted their price target on Leidos from $173.00 to $200.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, UBS Group upped their price target on Leidos from $149.00 to $168.00 and gave the stock a “neutral” rating in a research note on Wednesday. Five equities research analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $180.69.

Leidos Stock Up 0.8 %

LDOS opened at $155.90 on Thursday. The company has a market capitalization of $19.99 billion, a PE ratio of 16.87, a price-to-earnings-growth ratio of 1.65 and a beta of 0.65. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.21 and a quick ratio of 1.13. Leidos has a fifty-two week low of $123.62 and a fifty-two week high of $202.90. The business has a 50-day moving average of $140.16 and a 200-day moving average of $149.45.

Leidos (NYSE:LDOS) last issued its earnings results on Tuesday, May 6th. The aerospace company reported $2.97 earnings per share for the quarter, beating analysts’ consensus estimates of $2.47 by $0.50. Leidos had a return on equity of 30.93% and a net margin of 7.53%. The company had revenue of $4.25 billion for the quarter, compared to the consensus estimate of $4.11 billion. During the same quarter in the prior year, the company earned $2.29 EPS. The firm’s quarterly revenue was up 6.8% on a year-over-year basis.

Institutional Investors Weigh In On Leidos

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Verdence Capital Advisors LLC lifted its position in Leidos by 4.8% during the 4th quarter. Verdence Capital Advisors LLC now owns 1,680 shares of the aerospace company’s stock valued at $242,000 after purchasing an additional 77 shares during the period. Smartleaf Asset Management LLC lifted its holdings in Leidos by 20.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 454 shares of the aerospace company’s stock valued at $65,000 after buying an additional 77 shares during the period. Parallel Advisors LLC boosted its stake in Leidos by 9.1% in the first quarter. Parallel Advisors LLC now owns 968 shares of the aerospace company’s stock valued at $131,000 after acquiring an additional 81 shares during the last quarter. Fifth Third Bancorp grew its holdings in Leidos by 3.2% during the 4th quarter. Fifth Third Bancorp now owns 2,738 shares of the aerospace company’s stock worth $394,000 after acquiring an additional 86 shares during the period. Finally, Contravisory Investment Management Inc. raised its position in shares of Leidos by 2.0% during the 4th quarter. Contravisory Investment Management Inc. now owns 4,796 shares of the aerospace company’s stock valued at $691,000 after acquiring an additional 95 shares during the last quarter. Institutional investors own 76.12% of the company’s stock.

Insider Buying and Selling

In other news, Director Gregory R. Dahlberg sold 1,250 shares of the stock in a transaction that occurred on Friday, May 9th. The shares were sold at an average price of $154.55, for a total transaction of $193,187.50. Following the sale, the director now directly owns 20,195 shares of the company’s stock, valued at $3,121,137.25. This represents a 5.83 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Robert C. Kovarik, Jr. sold 1,511 shares of the business’s stock in a transaction that occurred on Thursday, February 13th. The stock was sold at an average price of $134.56, for a total transaction of $203,320.16. Following the completion of the transaction, the director now owns 6,408 shares of the company’s stock, valued at $862,260.48. This trade represents a 19.08 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 4,889 shares of company stock worth $675,786 in the last quarter. 0.69% of the stock is owned by corporate insiders.

Leidos Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Stockholders of record on Monday, June 16th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.03%. The ex-dividend date is Monday, June 16th. Leidos’s payout ratio is 17.32%.

About Leidos

Leidos Holdings, Inc, together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through Defense Solutions, Civil, and Health segments. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S.