FINWIRES · TerminalLIVE
FINWIRES

Leidos Portfolio Diversification Seen Underappreciated, RBC Says

By

Leidos Holdings' (LDOS) diversified portfolio remains underappreciated, with strength in its Homeland and Defense businesses, while capital allocation could be a positive catalyst for the stock, RBC Capital Markets said.

The brokerage said in a Tuesday note that the size of the health segment, which faces tough 2027 comparisons, justifies investor focus. However, as growth shifts to the Defense and Homeland businesses, it believes sentiment toward the stock should improve.

Leidos reported Q2 adjusted earnings of $3.26 per share ahead of the consensus estimate. Revenue rose 7% year over year, primarily driven by strength in the Homeland segment.

Leidos' strong balance sheet and increased share repurchases could support the stock. Management is favoring internal investments and returning capital to shareholders over acquisitions, which it views as relatively expensive, according to the note

RBC maintained its outperform rating on the stock and cut its price target to $170 from $180.

Shares of Leidos were down 1.7% in Wednesday afternoon trading.

Price: $128.33, Change: $-2.27, Percent Change: -1.74%

Related Articles

Wire

Zeta Global Swings to Q2 Earnings, Revenue Rises; Shares Drop After Hours

Zeta Global Holdings (ZETA) reported Q2 net income late Tuesday of $8.17 million, swinging from the loss of $12.8 million a year earlier.Revenue in the three months ended June 30 rose to $442.8 million from $308.4 million a year earlier.Analysts surveyed by FactSet expected $420.6 million.The company expects Q3 revenue of $469 million to $472 million, up $10 million at the midpoint from the prior guidance of $461 million.Analysts project $461 million.Zeta boosted full-year guidance to GAAP EPS of $0.09 to $0.11 from the prior forecast of $0.02 to $0.04 on revenue of $1.811 billion to $1.824 billion, up $33 million at the midpoint from the previous projection of $1.785 billion.Analysts expect EPS of $0.04 on revenue of $1.79 billion.Zeta shares fell 6.8% in after-hours trading.

$ZETA
Wire

Voya Financial Q2 Adjusted Earnings, Revenue Fall; Shares Drop After Hours

Voya Financial (VOYA) reported Q2 adjusted net income late Tuesday of $1.51 per diluted share, down from $2.46 a year earlier.Analysts polled by FactSet expected $1.98.Revenue in the three months ended June 30 fell to $1.896 billion from $1.981 billion a year earlier.Analysts expected $1.897 billion.Voya shares fell 3.9% in after-hours trading.

$VOYA
Wire

Toast Q2 Earnings, Revenue Rise; Shares Drop After Hours

Toast (TOST) reported Q2 earnings late Tuesday of $0.26 per diluted share, up from $0.13 a year earlier.Analysts surveyed by FactSet expected $0.20.Revenue in the three months ended June 30 rose to $1.91 billion from $1.55 billion a year earlier.Analysts expected $1.87 billion.Toast shares fell 6.4% in after-hours trading.

$TOST