Earnings were mixed at Leidos, Reston, Va., in the third quarter, which the government defense and services company said Tuesday was affected by challenges to contract awards by business rivals.
Net income for the quarter ended Sept. 30 was $164 million or $1.17 a share, down from $208 million, or $1.43 a share, in the year-ago quarter. Quarterly revenue was $3.6 billion, up year-over-year from $3.5 billion.
Quarterly segment operating income for the Civil group where Leidos quarterbacks its DOE Office of Environmental Management work was $79 million, up from $58 million a year ago. Segment revenue was $874 million, up from $792 million in the year-ago period.
“Our third quarter results demonstrate the momentum in our business as we continue to report revenue growth at the upper end of our guidance across our diversified portfolio,” Leidos Chairman and CEO Roger Krone said in the earnings press release.
Krone also expects a “robust” budget for fiscal 2023 to be passed by the end of the calendar year. A continuing resolution is keeping spending at the Department of Defense, Department of Energy and other agencies largely at fiscal 2022 levels through Dec. 16. The Leidos CEO said Sen. Richard Shelby (R-Ala.), who is vice chair of the Senate Appropriations Committee, is committed to passing a budget “during the lame duck session” after the election.
During the call, Krone also said Leidos earnings would have been better but the company saw nearly $1 billion worth of contract awards protested during the most recent quarter.
Leidos is the lead partner in Hanford Mission Integration Solutions, which holds a potential $4.1 billion, 10-year contract at the DOE’s Hanford Site in Washington state.
Leidos is also part of the Becthel-led Consolidated Nuclear Security team that currently runs the Y-12 National Security Complex in Tennessee and the Pantex nuclear weapons plant in Texas.
