RESTON, Va. - Leidos (NYSE:LDOS), a Fortune 500 innovation company, has been awarded a new contract by the Naval Supply Systems Command (NAVSUP) Fleet Logistics Center. The Technical Assistance for Repairables Processing (TARP) contract aims to provide critical supply support for weapons systems, ensuring the U.S. Navy and Marine Corps forces remain mission-ready.
The contract, which includes a base period of one year with the possibility of extension through four one-year options and an additional six-month option, will see Leidos continue its longstanding support of NAVSUP's Weapon Systems Support (WSS). Leidos has been integral in advancing traceability and control solutions that contribute to the movement, control, and tracking of depot-level repairables globally. These efforts are designed to reduce repair pipeline time and the cost of future investments.
Jason McCarthy, Leidos Senior Vice President of Engineering, Integration & Operations, stated that the company is committed to delivering mission-enabling technology and data-driven logistics. A key innovation under the new contract is the development of a business intelligence dashboard that provides live data and reporting, enhancing decision support systems even in offline environments.
Leidos will also continue to support the Reverse Supply Chain (RSC) through the TARP program. This involves training U.S. Navy field and fleet personnel on the correct packaging of military assets and the use of the electronic Retrograde Management System (eRMS), which offers visibility and accountability for repairables within RSC transportation channels.
This latest contract marks the seventh TARP program contract awarded to Leidos since 2000. The company has consistently introduced innovations to support the program, including automated reporting and the creation of mobile applications for project data capture.
The information in this article is based on a press release statement from Leidos Holdings (NYSE:LDOS), Inc. The company, headquartered in Reston, Virginia, reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. Leidos' efforts are focused on addressing challenges in national security and health for government and commercial customers.
In other recent news, Leidos Holdings Inc. reported a surge in third-quarter earnings, significantly surpassing analyst expectations. The defense and technology services provider recorded adjusted earnings per share of $2.93, comfortably beating the analyst consensus of $2.01. Revenue for the quarter stood at $4.19 billion, exceeding estimates of $4.07 billion and marking a 7% year-over-year increase. Following these robust financial results, Leidos raised its full-year guidance for FY2024 to an EPS of $9.80-$10.00 and revenue of $16.35-16.45 billion. Truist Securities subsequently increased its price target for Leidos to $205.00 from the previous $175.00 while maintaining a Buy rating. The company also reported strong bookings of $8.1 billion for the quarter, pushing the total backlog to $40.6 billion. Additionally, Leidos announced a 5.3% increase in its quarterly dividend to $0.40 per share.
InvestingPro Insights
Leidos' recent contract win with NAVSUP aligns well with its strong market position and financial performance. According to InvestingPro data, Leidos boasts a market capitalization of $25.04 billion, reflecting its significant presence in the Professional Services industry. The company's revenue for the last twelve months as of Q2 2024 stood at $16.01 billion, with a healthy revenue growth of 7.86% over the same period.
This growth trajectory is supported by InvestingPro Tips, which indicate that Leidos' net income is expected to grow this year. The company's profitability is further underscored by its operating income margin of 9.97% for the last twelve months as of Q2 2024, demonstrating efficient operations and cost management.
Leidos' commitment to shareholder value is evident in its dividend history. An InvestingPro Tip highlights that the company has raised its dividend for 6 consecutive years, with a current dividend yield of 0.86%. This consistent dividend growth, coupled with a strong return over the last year, has contributed to Leidos' impressive stock performance, with a one-year price total return of 104.83%.
The company's stock is currently trading near its 52-week high, with a price that is 99.45% of its 52-week high value. This performance reflects investor confidence in Leidos' business model and growth prospects, particularly in light of contracts like the one with NAVSUP.
For investors seeking more comprehensive insights, InvestingPro offers 18 additional tips for Leidos, providing a deeper understanding of the company's financial health and market position.
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