Leidos (NYSE: LDOS) reported Q4 EPS of $1.63, $0.02 better than the analyst estimate of $1.61. Revenue for the quarter came in at $3.25 billion versus the consensus estimate of $3.39 billion.

• Revenues: $3.25 billion for fourth quarter; $12.30 billion for the year
• Diluted Earnings per Share: $1.37 for fourth quarter, year-over-year growth of 9%; $4.36 for the year Non-GAAP Diluted Earnings per Share: $1.63 for fourth quarter, year-over-year growth of 8%; $5.83 for the year
• Cash Flows from Operations: $52 million used in operations for fourth quarter; $1,334 million provided by operations for the year

Roger Krone, Leidos Chairman and Chief Executive Officer, commented: "Fourth quarter results reflect the resilience of our growing portfolio with new record levels of revenue and backlog, coupled with margin expansion and further balance sheet optimization. This performance positions us for above-market growth in 2021, fueled by our talented diverse workforce who continue to engineer and deliver technologically innovative and secure solutions for our customers' evolving needs."

Intent to Acquire Gibbs & Cox, Inc.

Consistent with Leidos strategy to add capabilities and deepen customer relationships, the Company has entered into a definitive agreement to acquire Gibbs & Cox, Inc. ("Gibbs & Cox"), the largest, full-service independent engineering and design firm specializing in naval architecture and marine engineering, for $380 million in cash. Headquartered in Arlington, Virginia, Gibbs & Cox has 525 employees. Over its 90 plus year history, Gibbs & Cox has remained a leader in maritime innovation and is on the frontlines of providing maritime solutions. The deal extends Leidos into an attractive maritime market where Leidos is under-penetrated today, and adds valuable engineering talent (naval architects and digital engineers) to the team. It further positions Leidos for long-term growth in the maritime unmanned market – a market requiring tight integration of ship design and autonomy systems. The transaction is expected to close in the second quarter of fiscal year 2021, subject to satisfaction of customary closing conditions.

GUIDANCE:

Leidos sees FY2021 EPS of $6.15-$6.45, versus the consensus of $6.47. Leidos sees FY2021 revenue of $13.7-14.1 billion, versus the consensus of $24.39 billion.

The Company's outlook for fiscal year 2021, which excludes the announced acquisition of Gibbs & Cox, is as follows:

• Revenues of $13.7 billion to $14.1 billion;
• Adjusted EBITDA margins of 10.3% to 10.5%;
• Non-GAAP diluted EPS of $6.15 to $6.45; and
• Cash flows provided by operating activities at or above $850 million.

For earnings history and earnings-related data on Leidos (LDOS) click here.