Leidos Holdings, Inc. - LDOS STOCK NEWS

Leidos Holdings (NYSE: LDOS) reported strong Q2 FY2024 results, with revenues up 8% year-over-year to $4.1 billion. Net income increased 54% to $324 million, or $2.37 per diluted share. Adjusted EBITDA grew 33% to $559 million, with a record margin of 13.5%. Non-GAAP diluted EPS rose 46% to $2.63.

The company generated $374 million in operating cash flow and $351 million in free cash flow. Net bookings totaled $4.0 billion, resulting in a book-to-bill ratio of 1.0. Leidos updated its FY2024 guidance, raising the adjusted EBITDA margin to approximately 12% and non-GAAP diluted EPS to $8.60-$9.00.

Leidos (NYSE:LDOS) has been awarded an $823 million task order from the Defense Information Systems Agency (DISA) for the Defense Enclave Services (DES) Department of Defense Network (DoDNet) program. This five-year task order is part of a larger $11.5 billion, 10-year contract to optimize network services for Fourth Estate Defense Agencies and Field Activities (DAFAs).

Leidos will provide operations and sustainment for DoDNet, expanding support from 30,000 to over 160,000 users, including 14 additional DAFAs. The company will ensure DoDNet's security, scalability, and operational status by offering IT solutions, cybersecurity support, and network management. DoDNet is expected to support approximately 370,000 DAFA users once fully implemented.

Leidos Holdings, Inc. (NYSE:LDOS) has announced a quarterly cash dividend of $0.38 per share of common stock. The dividend will be payable on September 27, 2024, to stockholders of record as of the close of business on September 13, 2024. Leidos is a Fortune 500® innovation company focusing on national security and health challenges. With a global workforce of 47,000, Leidos reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. The company is headquartered in Reston, Virginia, and serves customers in heavily regulated industries.

Leidos and Google have collaborated to develop a healthcare-specific AI application using Google's Medical Pathways Language Model 2 (MedPaLM2). This domain-specific model offers greater accuracy and relevance for medical questions compared to general AI models. The application aims to further reduce disability benefits approval processing time from days to potentially hours.

Key features of the AI application include:

• Retrieval Augmentation Generation (RAG) for self-updating
• Human oversight to ensure accuracy
• Built on Leidos' Framework for AI Resilience and Security (FAIRS)
• Addressing potential biases in training data

Leidos is now focusing on scaling the application for production environments, processing thousands of reports weekly. Future applications may include claims management, data interoperability, and clinical decision support.

Leidos, a partner of the National Institutes of Health (NIH) for over 25 years, operates the Frederick National Laboratory for Cancer Research and supports The Children's Inn at NIH. The company recently sponsored the Inn's 10th annual An Evening for Hope gala, which raised over $1.8 million for children with rare and serious diseases. In 2023, Leidos' contributions provided 191 families with 59 nights of free accommodation at The Inn, enabling their participation in critical NIH clinical research studies. The company also funded 24 recreational and educational activities for families staying at The Inn. With over 15,000 nights of accommodations provided to 730 families in 2023, The Children's Inn continues to be a vital resource for families worldwide, running entirely on donations.

Leidos has partnered with the American Red Cross for nearly eight years, focusing on blood donation drives and other initiatives. The company launched blood drives at its Columbia, Maryland, and Reston, Virginia headquarters in October 2015. Since 2016, Leidos has hosted 31 blood drives, collecting 926 units of blood from over 1,000 donors, including 171 first-time donors.

Leidos has also partnered with its African American Leidos Network (AALN) ERG to sponsor a sickle-cell anemia drive and collaborated with the Leidos Pride ERG to educate about FDA guidelines for blood donation in the LGBTQ+ community. The company's efforts have continued even during the COVID-19 pandemic, collecting 278 units from 2020-2021.

Blood donation is critical, with nearly 30,000 units needed daily in the U.S. Leidos emphasizes the convenience and importance of blood donation, noting that one pint can save up to three lives.

Leidos, a key player in defense logistics, draws parallels between the D-Day logistics operation and its current support for defense and government customers across the UK, U.S., and Australia. The company highlights its role in the Logistics Commodities & Services Transformation (LCST) Programme for the UK Ministry of Defence, which aims to enhance the digital infrastructure of the UK's defense supply chain.

Leidos' logistics expertise has supported recent defense operations in Europe, Afghanistan, Ukraine, Sudan, Mali, and Turkey, demonstrating its ability to deliver under diverse and challenging conditions. The company emphasizes the critical nature of logistics in both historical and modern military operations, drawing inspiration from the meticulous planning and execution that made D-Day successful.

Leidos (NYSE: LDOS) has secured a $476 million contract from NASA to continue providing cargo mission support for the International Space Station (ISS) and Artemis program. The contract spans a base period of two years, with operations primarily conducted at Leidos' Webster, Texas facilities. This contract includes engineering, maintenance, operations support, and hardware development to ensure mission success. Leidos has been a critical partner for NASA since 2004, supporting over 160 ISS missions. The company is known for innovations like the Exploration Potable Water Dispenser (xPWD), which improves living conditions in space.

Leidos (NYSE: LDOS), a Fortune 500 company, has been awarded the Medicaid Enterprise Systems Integrator contract by North Dakota Health and Human Services. Announced on July 9, 2024, the contract involves transitioning North Dakota's existing Medicaid Management Information Systems to a modern, integrated, and secure modular system. Liz Porter, President of Leidos Health & Civil Sector, highlighted that the modernization will enhance healthcare experiences for patients, providers, and administrators. The project aims to improve health outcomes and ensure efficient and economical Medicaid program management. Leidos will utilize its expertise in technology modernization to deliver tailored solutions that support data-driven decision-making. The modernization effort will involve optimizing data management, ensuring interoperability, and executing a seamless system transition.