Leidos Holdings, Inc.’s LDOS fourth-quarter 2018 adjusted earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.07 by 2.8%. The bottom line also increased 26.4% from 87 cents per share registered a year ago.Moreover, the company’s GAAP earnings of $1.25 per share surged 79% from the year-ago figure of 70 cents.The year-over-year bottom-line improvement can be attributed to solid operating income growth.For 2018, the company’s adjusted earnings came in at $4.38 per share, which exceeded the Zacks Consensus Estimate of $4.36 by 0.5%. The reported figure also improved 17.7% from the year-ago tally.Leidos Holdings, Inc. Price, Consensus and EPS Surprise Leidos Holdings, Inc. Price, Consensus and EPS Surprise | Leidos Holdings, Inc. QuoteTotal RevenuesLeidos Holdings generated total revenues of $2,647 million in the quarter under consideration, which missed the Zacks Consensus Estimate of $2,666 million by 0.7%. However, the top line improved 5.2% year over year. For 2018, the company’s total revenues amounted to $10.19 billion, which missed the Zacks Consensus Estimate of $10.21 billion by a whisker.Nevertheless, the reported figure inched up 0.2% year over year.BacklogAt the end of 2018, the company’s backlog of signed business orders was $20.8 billion, of which $6.4 billion was funded.Operational StatisticsIn the reported quarter, total cost of revenues increased by 4.5% to $2,278 million. Operating income was $188 million compared with $101million in the year-ago period, primarily owing to decline in acquisitions, integration and restructuring costs, and lower amortization of intangible assets.As a result, the operating margin expanded to 7.1% from 4% in the prior-year quarter.Interest expenses summed $34 million compared with $35 million in the year-ago quarter.Segmental PerformanceDefense Solutions: Net revenues at this segment improved 3.6% to $1,265 million from the prior-year figure of $1,221 million. This upside can be primarily attributed to new awards that this segment received in the quarter under review.However, the segment’s operating income declined to $81 million from the year-ago income of $85 million with the operating margin having contracted60 basis points (bps) to 6.4%.Health: The segment recorded revenues of $497 million in the fourth quarter, up 12.7% year over year. The improvement was primarily driven by a net increase in program volumes.While operating income improved 54.5% to $68 million, operating margin expanded 370 bps to 13.7%.Civil: Revenues at this segment amounted to $885 million, up 3.6%. This uptick was mainly driven by expanded volumes from new programs.Operating income also rose 10.7% to $93 million, while operating margin expanded 40 bps to 7%.FinancialsCash and cash equivalents as of Dec 31, 2018, were $327 million compared with $390 million as of Dec 29, 2017. Net cash provided by operating activities in 2018 was $768 million compared with $526 million a year ago.2019 GuidanceLeidos Holdings issued an outlook for 2019. The company currently expects its adjusted earnings to be in the range of $4.25-$4.60 per share on revenues of $10.5-$10.9 billion.The Zacks Consensus Estimates for the company’s 2019 earnings and revenues are pegged at $4.71 and $10.63 billion, respectively. While the bottom line estimate surpasses the company provided guidance, the top line estimate lies near the mid-point of the company's provided outlook.Moreover, the company projects its cash flow from operating activities to be $725 million, at 2019 end.Zacks RankLeidos Holdings has a Zacks Rank #4 (Sell).Recent Defense ReleasesFLIR Systems Inc.’s FLIR fourth-quarter 2018 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The company carries a Zacks Rank #3 (Hold).Textron TXT reported fourth-quarter 2018 adjusted earnings of $1.15 per share from continuing operations, which exceeded the Zacks Consensus Estimate of 98 cents by 17.3%. The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hexcel Corporation’s HXL fourth-quarter 2018 adjusted earnings of 82 cents per share outpaced the Zacks Consensus Estimate of 80 cents by 2.5%. The company carries a Zacks Rank #2 (Buy).Zacks' Top 10 Stocks for 2019In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.See Latest Stocks Today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report Hexcel Corporation (HXL): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report FLIR Systems, Inc. (FLIR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research