RESTON, Va. - Leidos Holdings , Inc. (NYSE: NYSE:LDOS), a Fortune 500 company specializing in technology solutions, has been awarded a contract by the National Institutes of Health (NIH) to support the eRA (Electronic Research Administration) system, which is integral to managing grants. The contract, potentially worth up to $326.5 million, extends over a five-year period, contingent on the exercise of all options.
Under this contract, Leidos will continue to provide agile software development and design services, a continuation of their collaboration with NIH since 2008. The eRA system is crucial for the application, management, and tracking of over $40 billion in annual research and non-research grants globally. The eRA supports numerous institutions and agencies, including the Centers for Disease Control and Prevention and the Food and Drug Administration.
Liz Porter, President of Leidos Health & Civil Sector, emphasized the company's commitment to sustaining the eRA's role as a center of excellence in grants management. The company plans to utilize its expertise in AI-assisted secure agile development to ensure that the eRA remains a modern, efficient, and secure platform for managing grants.
Leidos, headquartered in Reston, Virginia, employs approximately 48,000 people worldwide and reported annual revenues of roughly $15.4 billion for the fiscal year ending December 29, 2023. The company is recognized for addressing complex challenges in national security and health sectors.
The information regarding the contract award is based on a press release statement. It is important to note that forward-looking statements included in the announcement are subject to risks and uncertainties and are not guarantees of future performance. Factors that could influence actual results are detailed in Leidos' regulatory filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 29, 2023.
In other recent news, Leidos Holdings, Inc. has been making significant strides in its business operations. The company reported a record quarter, with a 7.7% year-over-year increase in revenue, reaching $4.13 billion. The adjusted EBITDA also saw a substantial rise, hitting $559 million, a 33% increase from the previous year. Following these robust results, Leidos raised its full-year guidance.
Leidos has also secured two major contracts recently. The first is an $86.4 million contract from the National Geospatial-Intelligence Agency for lifecycle management of analytics systems. The second is a $191 million contract to provide the U.S. Army with integrated lifecycle software and management solutions. These contracts underline the company's ongoing success and strategic focus.
Leidos' revenue guidance for 2024 has been raised to a range of $16.1 billion to $16.4 billion, with adjusted EBITDA expected to be around 12%. These are recent developments in the company's performance and strategic focus.
InvestingPro Insights
Leidos Holdings, Inc. (NYSE: LDOS) has recently secured a significant contract with the NIH, reinforcing its position as a key player in the Professional Services industry. The company's commitment to innovation and secure agile development is mirrored in its financial metrics and market performance. As of the last twelve months as of Q2 2024, Leidos boasts a market capitalization of $19.85 billion, reflecting investor confidence in its market position and future growth prospects.
InvestingPro data indicates that Leidos has a Price/Earnings (P/E) ratio of 45.81, which is high relative to the industry average, suggesting a strong future earnings outlook as corroborated by the company's expected net income growth this year. Moreover, Leidos has demonstrated consistent financial discipline, maintaining dividend payments for 13 consecutive years and raising them for the past 5 years, with a recent dividend yield of 1.03%. This consistent return to shareholders is a testament to the company's stability and commitment to long-term value creation.
InvestingPro Tips highlight that Leidos has been profitable over the last twelve months and is expected to remain profitable this year, according to analysts. The company's stock is characterized by low price volatility, which may appeal to investors seeking stability in their portfolio. For those interested in further insights, InvestingPro offers additional tips on Leidos, providing a more comprehensive analysis of the company's financial health and market potential.
As Leidos continues to deliver on high-profile contracts and maintain its growth trajectory, it's worth noting that there are currently 10 additional InvestingPro Tips available that could provide investors with a deeper understanding of the company's performance and investment potential.
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