Leidos sees FY23 EPS $6.40-$6.80, consensus $6.81

Sees FY23 revenue $14.7B-$15.1B, consensus $15.02B. Sees FY23 adjusted EBITDA margin 10.3%-10.5%. Sees FY23 cash flows provided by operating activities $700M. The company said, "Fiscal year 2023 guidance for cash flows provided by operating activities reflects approximately $300 million of additional cash taxes compared to fiscal year 2022, primarily related to the Tax Cuts and Jobs Act of 2017 provision requiring the capitalization and amortization of research and development costs that went into effect on January 1, 2022. While awaiting potential Congressional action in 2022, Leidos accrued, but did not pay the incremental 2022 cash taxes and now expects to make payments in 2023 to cover both the 2022 and 2023 tax amounts. The actual impact on cash flows provided by operating activities will depend on the amount of research and development costs Leidos will incur, whether Congress modifies or repeals this provision and whether new guidance and interpretive rules are issued by the US Treasury, among other factors."