LDOS Earnings Analysis
Revenue Analysis
Total and Operating Revenue: Over the last three years, LDOS’s operating revenue showed minor fluctuations. For instance, the operating revenue in March 2024 was $3,975,000,000, displaying an incremental rise from $3,981,000,000 in December 2023. However, a significant drop occurred in September 2023 to $3,921,000,000 before slightly rising to $3,838,000,000 by June 2023.
Gross Profit Margin: Gross profit mirrored the revenue patterns, peaking at $638,000,000 in March 2024 from $595,000,000 in December 2023, then notably decreasing backward through the periods to $495,000,000 in March 2023. This trend suggests a proportionate management of cost of sales relative to the revenue.
Cost Management
Cost of Revenue: Consistently, the cost of revenue remained the largest expense, closely tracking revenue patterns and varying slightly across the periods with a figure of $3,337,000,000 in March 2024, scaling up slightly from $3,385,000,000 in December 2023, indicating a very tight operational cost control.
Operating Expense: General and administrative expenses stood firm at $226,000,000 in March 2024, demonstrating LDOS’s ability to keep its administrative overheads in check despite changing business scales.
Total Expenses: Total expenses also showed consistency with revenues, tallying up to $3,563,000,000 in March 2024, showing a marginal increase from the preceding periods.
Profitability Analysis
EBITDA: EBITDA, a crucial earnings metric, stood at $486,000,000 in March 2024, signaling strong earnings before interest, taxes, depreciation, and amortization, though this represented a slight decrement relative to $452,000,000 recorded in December 2023.
Operating Income: Operating income fluctuated but showed overall resilience, recorded at $412,000,000 in March 2024, indicating good management’s operational efficiency.
Pretax and Net Income: Pretax income reached $368,000,000 by March 2024, while net income from continuing operations adjusted for minority interests lay at $284,000,000, suggesting healthy profitability levels post operational costs and expenses.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses stood steady, representing ongoing capital expenditure and asset utilization, noted at $69,000,000 in March 2024.
Interest Expense: Interest expenses indicate the cost of financing at $49,000,000 for the period ending March 2024, signaling significant leverage.
Taxation
Tax Rate and Provision: The effective tax rate has varied across the periods with a noticeable rate of approximately 23% in March 2024, with a corresponding tax provision of $85,000,000.
Tax Effect of Unusual Items: Unusual items considerably affected the tax implications, where they contributed a negative tax effect, most noticeable in September 2023 with -$145,320,000.
Shareholder Metrics
Diluted and Basic EPS: Earnings per share for LDOS showed significant variability, with a diluted EPS not available in March 2024 due to undisclosed average share counts; however, values varied from -2.91 in September 2023 to a high of 1.67 in December 2023.
Net Income Available to Common Stockholders: Consistent with net income figures, the value provided to stockholders showed a recovery to $284,000,000 by March 2024 from its earlier lows in 2023.
Conclusion
LDOS has demonstrated strong revenue generation capabilities with effective cost management and profitability metrics showing resilience across unpredictable financial periods. The firm sustains a robust operational model but should continue to monitor and manage its unusual items and taxation impacts closely.
Appendices
Data tables and detailed calculations are available upon request to support this comprehensive earnings analysis.