Leidos Q1 Profit Tops Estimates

Leidos Holdings Inc LDOS reported stronger-than-expected earnings for the first quarter on Tuesday. The Reston, Virginia-based company reported quarterly net income of $41 million, or $0.55 per share, compared to $37 million, or $0.47 per share, in the year-ago quarter. Excluding items, the company's earnings per share from continuing operations rose to $0.65 per share from $0.59 per share. Its revenue slipped to $1.25 billion from 1.31 billion. However, analysts were expecting a profit of $0.61 per share on revenue of $1.2 billion. The average estimate among 4 Estimize users was for earnings of $0.60 per share and revenue of $1.22 billion. National Security Solutions revenue dropped 9 percent year-over-year in the latest quarter, while Health and Engineering revenue rose 3 percent. Its operating income from continuing operations declined to $38 million from $87 million. New business bookings in the quarter totaled $891 million. As of April 3, 2015, Leidos had $377 million in cash and cash equivalents and $1.2 billion in long-term debt. Roger Krone, Leidos Chairman and Chief Executive Officer said, "We are starting out the year on a good note, with the first quarter's financial and operational performance coming in as expected, and tracking well to our annual guidance. We are making good progress in expanding our served markets, improving our business development results, and focusing the Company on our core competencies. The continued dedication and customer-centric focus of our employees increases our ability to deliver on the promise of Leidos, and I am encouraged by the possibilities ahead." For the full year, Leidos projects earnings of $2.20 to $2.45 per share, on revenue of $4.6 billion to $5 billion. Leidos shares rose 0.40 percent to close at $42.88 yesterday.