RESTON, Va. - Leidos Holdings , Inc. (NYSE:LDOS), a Fortune 500® innovation company and prominent player in the Professional Services industry, has been awarded a prime contract by the National Geospatial-Intelligence Agency (NGA) to supply geospatial intelligence (GEOINT) products. According to InvestingPro data, the company maintains strong financial health with a market capitalization of $20.35 billion. The agreement includes a one-year base period with the possibility of four one-year extensions and an additional six-month option, potentially reaching a total value of $107 million.
The contract tasks Leidos with delivering human geographic, topographic, and open-source data products to support the operations of NGA's cartographers, human geographers, toponymists, catalogers, and collectors. Additionally, Leidos will provide GEOINT products for the NGA's Geographic Names Server, which is essential for maintaining up-to-date geographic information.
Roy Stevens, President of Leidos National Security Sector, emphasized the importance of the contract, stating that the company's data products are crucial for NGA analysts to conduct effective analysis in support of mission requirements, particularly for warfighters and national security objectives.
Leidos, headquartered in Reston, Virginia, is known for its work in national security and health sectors. The company employs approximately 48,000 individuals worldwide and reported annual revenues of approximately $15.4 billion for the fiscal year ended December 29, 2023. InvestingPro analysis reveals the company has achieved an impressive 42.41% year-to-date return and is currently trading below its Fair Value, suggesting potential upside opportunity. Subscribers to InvestingPro can access 8 additional key insights about Leidos's financial performance and market position.
The contract with NGA represents a significant commitment to providing the agency with the essential data needed for its wide range of mapping and analysis activities. Leidos' role in this contract underscores its position within the defense and intelligence community as a provider of critical technology solutions.
The company's forward-looking statements, as defined by SEC regulations, indicate management's expectations and are subject to risks and uncertainties. These statements are not guarantees of future performance and are dependent on various factors, as detailed in Leidos' filings with the SEC. Notably, InvestingPro data shows analysts maintain a positive outlook, with net income expected to grow this year. For comprehensive analysis including detailed financial metrics and expert insights, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
This news is based on a press release statement from Leidos Holdings, Inc. and serves to inform on the factual aspects of the contract and the company's role without endorsing any claims or future outcomes.
In other recent news, Leidos Holdings has been the subject of notable developments. The company's shares were downgraded by Goldman Sachs from Buy to Neutral, with a revised price target of $153. Despite this, Leidos posted strong Q3 2024 results, marking its sixth consecutive quarter of growth with a 7% revenue increase, reaching $4.19 billion. Consequently, the company raised its 2024 revenue guidance to between $16.35 billion and $16.45 billion.
Leidos has also secured three new contracts totaling over $30 million from the Defense Information Systems Agency (DISA). Furthermore, the company was awarded a significant contract, potentially worth up to $235 million, to modernize the Organ Procurement and Transplant Network (OPTN).
UBS initiated coverage on Leidos with a Neutral rating, while JPMorgan revised its price target for the company to $205, up from $185. Both firms highlighted strong performance trends in the Federal IT sector. These are among the recent developments that continue to shape Leidos' business operations.
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