“If you were going to fashion an enterprise designed to cope effectively with a global pandemic, you probably couldn’t do much better than the business model created by Leidos.”
“The top-ranked provider of information technology, science and engineering services to diverse federal agencies generates 87% of revenues from the U.S. government, and thus is less exposed to the economic downturn than many commercial companies.”
“The services it supplies to the government are almost all essential, from its support of intelligence agencies to life sciences work with the Centers for Disease Control to management of FEMA’s strategic stockpile.”
“And its ‘capital light’ business model transitioned readily to telework when employees were urged to self-isolate at the onset of the coronavirus crisis.”
“Of course, it helps to begin a difficult period in good financial shape, and Leidos finished its 2019 fiscal year with record sales, record organic growth, and record backlog. The company’s forward guidance for 2020 was that revenues would be well above $12 billion, making it one of the biggest providers of technical services to the government.”
“Shareholders will find out in May whether that guidance remains intact, but at the moment Leidos seems to be faring far better than most Fortune 500 companies in the crisis. Chairman and CEO Roger Krone says he is ‘amazed’ at how well his company is dealing with the pandemic…” Read the full article here.
Source: Leidos Discovers Its Business Model Adapts Surprisingly Well To Coronavirus – By Loren Thompson, April 22, 2020. Forbes.
