Leidos Holdings (LDOS) has reported 85.71 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $91 million, or $0.80 a share in the quarter, compared with $49 million, or $0.67 a share for the same period last year.
Revenue during the quarter surged 43.47 percent to $1,868 million from $1,302 million in the previous year period. Gross margin for the quarter expanded 14 basis points over the previous year period to 12.74 percent. Total expenses were 94.59 percent of quarterly revenues, up from 92.78 percent for the same period last year. That has resulted in a contraction of 181 basis points in operating margin to 5.41 percent.
Operating income for the quarter was $101 million, compared with $94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $177 million compared to $101 million in the prior year period. At the same time, adjusted operating margin improved 172 basis points in the quarter to 9.48 percent from 7.76 percent in the last year period.
Roger Krone, Leidos chairman and chief executive officer commented: "Our focus on growth and profitability drove record quarterly EPS for the Company and the fifth consecutive quarter of year over year organic growth. The integration activities following our successful acquisition of Lockheed Martin’s IS&GS business during the quarter are proceeding well, with transaction-related synergies running ahead of plan. The encouraging results year-to-date, including strong bookings and cash generation, give us confidence in raising our full year outlook."
For financial year 2016, Leidos Holdings projects revenue to be in the range of $7,000 million to $7,100 million. The company forecasts diluted earnings per share to be in the range of $3.50 to $3.60 on adjusted basis.
Operating cash flow improvesLeidos Holdings has generated cash of $284 million from operating activities during the nine month period, up 5.58 percent or $15 million, when compared with the last year period. Cash flow from investing activities was $34 million for the nine month period, up 41.67 percent or $10 million, when compared with the last year period. It has incurred net capital expenditure of $13 million on net basis during the nine month period, up 333.33 percent or $10 million from year ago period.
The company has spent $524 million cash to carry out financing activities during the nine month period as against cash outgo of $23 million in the last year period.
Cash and cash equivalents stood at $449 million as on Sep. 30, 2016, down 29.29 percent or $186 million from $635 million on Oct. 02, 2015.
Working capital declines
Leidos Holdings has witnessed a decline in the working capital over the last year. It stood at $576 million as at Sep. 30, 2016, down 16.16 percent or $111 million from $687 million on Oct. 02, 2015. Current ratio was at 1.29 as on Sep. 30, 2016, down from 1.66 on Oct. 02, 2015.
Days sales outstanding went down to 63 days for the quarter compared with 68 days for the same period last year.
Debt increases substantiallyLeidos Holdings has witnessed an increase in total debt over the last one year. It stood at $3,470 million as on Sep. 30, 2016, up 203.06 percent or $2,325 million from $1,145 million on Oct. 02, 2015. Total debt was 36.23 percent of total assets as on Sep. 30, 2016, compared with 34.68 percent on Oct. 02, 2015. Debt to equity ratio was at 1.11 as on Sep. 30, 2016, down from 1.20 as on Oct. 02, 2015. Interest coverage ratio deteriorated to 3.61 for the quarter from 6.27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
