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Leidos secures CDC contract for health network modernization

Published 03/09/2024, 13:34
LDOS
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RESTON, Va. – Leidos (NYSE:LDOS), a Fortune 500 company specializing in innovation, has been awarded a $51 million contract by the Centers for Disease Control and Prevention (CDC) to modernize the National Healthcare Safety Network (LON:NETW) (NHSN). The contract spans a five-year period and tasks Leidos with the development, maintenance, and support of the NHSN, a platform critical to U.S. healthcare data management.

The NHSN, under the CDC's National Center for Emerging and Zoonotic Infectious Diseases, is a key element in monitoring and enhancing patient safety and healthcare delivery nationwide. Liz Porter, President of Leidos Health & Civil Sector, highlighted the company's longstanding partnership with the CDC, which has enabled over 38,000 healthcare facilities and 160,000 users to access valuable healthcare data since NHSN's inception in 2003. The collaboration aims to ensure secure data transmission and contribute to improved patient outcomes through system modernization and efficiency.

Leidos will focus on advancing the NHSN application, which supports electronic health records integration, infection prevention, healthcare system capacity monitoring, vaccination tracking, and the prevention of healthcare-associated infections and antimicrobial resistance. The system is utilized by nearly all U.S. hospitals, nursing homes, dialysis facilities, and ambulatory surgery centers, providing essential data to assess the effectiveness of prevention efforts and the overall quality and safety of care.

Headquartered in Reston, Virginia, Leidos is a global company with a workforce of 48,000. It reported annual revenues of approximately $15.4 billion for the fiscal year ending December 29, 2023. The company is known for delivering technology solutions in national security and health for heavily regulated industries.

The information in this article is based on a press release statement from Leidos Holdings (NYSE:LDOS), Inc.

In other recent news, Leidos Holdings, Inc. has reported robust financial performance, with a 7.7% year-over-year increase in revenue, reaching $4.13 billion, and a significant rise in adjusted EBITDA, which hit $559 million, a 33% increase from the previous year. Based on these results, the company has raised its full-year guidance, projecting revenues for 2024 to be in the range of $16.1 billion to $16.4 billion, with adjusted EBITDA expected to be around 12%.

In addition to its financial performance, Leidos has secured several significant contracts recently. These include a contract by the Space Systems Command to enhance missile warning and tracking capabilities, a $326.5 million contract by the National Institutes of Health to support the eRA system, an $86.4 million contract from the National Geospatial-Intelligence Agency for lifecycle management of analytics systems, and a $191 million contract to provide the U.S. Army with integrated lifecycle software and management solutions.

These contracts and strong financial results underscore Leidos' ongoing success and strategic focus. These are recent developments in the company's performance and strategic focus. The company's commitment to delivering advanced solutions that bolster national security and health sectors is evident in these recent achievements.

InvestingPro Insights

As Leidos (NYSE:LDOS) secures a significant contract with the CDC, the company's financial standing and market performance continue to be of interest to investors and stakeholders. With a current market capitalization of $21.35 billion, Leidos demonstrates substantial market presence. The company's P/E ratio stands at 22.46 for the last twelve months as of Q2 2024, indicating investor confidence in its earnings potential. Furthermore, Leidos has shown commendable revenue growth of 7.86% over the same period, underscoring its ability to expand its operations effectively.

InvestingPro Tips reveal that Leidos has been consistent in rewarding its shareholders, having raised its dividend for 5 consecutive years and maintained dividend payments for 13 consecutive years. This consistency is a testament to the company's financial health and commitment to returning value to its investors. Additionally, the company is acknowledged as a prominent player in the Professional Services industry, which may provide it with a competitive edge in securing and fulfilling contracts like the one with the CDC.

Investors seeking more detailed analysis will find additional InvestingPro Tips on Leidos, which provide deeper insights into the company's performance and future outlook. With 15 more tips available, including expectations on net income growth and analysts' profitability predictions for the year, these insights can be further explored at https://www.investing.com/pro/LDOS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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