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Leidos Holdings, Inc. (NYSE:LDOS) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.7% to hit US$4.2b. Leidos Holdings reported statutory earnings per share (EPS) US$2.77, which was a notable 19% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
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Following last week's earnings report, Leidos Holdings' 15 analysts are forecasting 2025 revenues to be US$17.2b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$10.19, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$17.1b and earnings per share (EPS) of US$10.04 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Leidos Holdings
The analysts reconfirmed their price target of US$173, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Leidos Holdings, with the most bullish analyst valuing it at US$200 and the most bearish at US$148 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Leidos Holdings' revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2025 being well below the historical 7.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Leidos Holdings.