Leidos Holdings, Inc. (NYSE:LDOS), a leading technology and innovation company serving government and commercial clients, is based in Reston, Virginia. The company has reported significant annual revenues of approximately $16.7 billion for the fiscal year ending January 3, 2025. Currently, Leidos is engaging in a cash tender offer to repurchase its outstanding 3.625% Senior Notes due 2025, with the offer set to expire on February 20, 2025.
The terms of the tender offer are determined by a fixed spread plus the yield of a specified U.S. Treasury Reference Security. Noteholders will receive accrued and unpaid interest from November 15, 2024, until the expected settlement date of February 25, 2025. This strategic financial move is contingent upon the successful issuance of new senior notes by Leidos, intended to generate enough net proceeds to fund the repurchase of the tendered notes.
Leidos has recently demonstrated robust financial performance, with earnings per share of $2.37, exceeding the forecasted $2.24. The company achieved a quarterly revenue of approximately $4.37 billion, outperforming the expected $4.09 billion. These results underscore Leidos' effective asset utilization, as reflected by an asset turnover ratio of about 1.27 over the trailing twelve months.
The company's inventory turnover ratio is notably high at 44.01, indicating its proficiency in inventory management and sales. Furthermore, Leidos has reported an operating profit margin of approximately 10.96%, demonstrating its ability to efficiently convert revenue into operating profit. In the most recent quarter, the company achieved a gross profit of $693 million, with operating expenses totaling $272 million.
On the balance sheet, Leidos has disclosed an inventory value of $315 million and net property, plant, and equipment valued at $1.55 billion. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and U.S. Bancorp Investments, Inc. are serving as dealer managers for the tender offer, with Global Bondholder Services Corporation acting as the depositary and information agent.
