Can LDOS sustain its earnings growth into 2025?

**Leidos Holdings Inc. (LDOS) is well-positioned to sustain its earnings growth into 2025**, based on several key factors:

1. **Consistent Financial Performance**: LDOS has demonstrated strong financial performance, with a net income growth rate of 22.61% reported for the most recent quarter ending on December 31, 2024. This consistent growth indicates a robust business model and the company's ability to generate increasing profits over time.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|LDOS|LDOS.N|Leidos Holdings|2024 Q1|72.5609756097561|2.83E8|169|
|LDOS|LDOS.N|Leidos Holdings|2024 Q2|54.285714285714285|3.24E8|169|
|LDOS|LDOS.N|Leidos Holdings|2024 Q3|191.41414141414143|3.62E8|169|
|LDOS|LDOS.N|Leidos Holdings|2024 Q4|22.608695652173914|2.82E8|169|

2. **Earnings Per Share (EPS) Growth**: The EPS growth rate for LDOS is even more impressive, with a year-over-year increase of 27.71% reported for the same period. This suggests that not only is the company growing its net income but also that it is effectively managing its dilution of earnings, which is a positive sign for sustainability.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|LDOS|LDOS.N|Leidos Holdings|2024 Q1|76.92307692307692|2.07|169|
|LDOS|LDOS.N|Leidos Holdings|2024 Q2|58.00000000000001|2.37|169|
|LDOS|LDOS.N|Leidos Holdings|2024 Q3|192.09621993127146|2.68|169|
|LDOS|LDOS.N|Leidos Holdings|2024 Q4|27.710843373493987|2.12|169|

3. **Contractual Backlog and Strategic Positioning**: LDOS has secured significant contracts, such as the $390 million NSA Signals Intelligence Contract, which provides a strong foundation for revenue growth. The company's strategic initiatives and partnerships, as evidenced by the successful testing of its Small Cruise Missile, also indicate a forward-looking growth trajectory.
4. **Analyst Confidence and Price Target**: The average analyst price target for LDOS is $178.83, with a consensus rating of "Buy". This suggests that analysts are optimistic about the company's future performance, which could translate into sustained earnings growth.

5. **Market Position and Innovation**: LDOS's leadership in the defense and intelligence sectors, coupled with its innovative solutions, positions it well to capitalize on market opportunities and sustain growth. The company's focus on cost-effective and adaptable military solutions is particularly timely, given the evolving needs of defense agencies.

In conclusion, LDOS's strong financial performance, strategic contract wins, analyst confidence, and innovative market positioning all point to the company's ability to sustain its earnings growth into 2025.