Earnings rose at Leidos, Reston, Va., in the first quarter, which the national security and technology company attributed to strong business demand across all its sectors.
Net earnings for the first quarter ended March 29 were $283 million, or $2.07 a share, up from $164 million or $1.17 a share, in the year-ago quarter, according to a Monday press release. Quarterly revenue was $3.98 billion, up year-over-year from $3.7 billion.
Quarterly segment operating income for the Heath & Civil Sector, where Leidos oversees its Department of Energy business, was $222 million, up from $113 million a year ago. Segment revenue was $1.2 billion up from $1 billion in the year-ago period.
Leidos now projects that its 2024 revenue will be in the $16-billion-to-$16.4-billion range. The prior expected range was $15.7-to-$16.1-billion, the company said in its release.
“With greater visibility around customer funding and performance ahead of plan, we are raising guidance on all metrics ahead of our typical pace,” Leidos CEO Thomas Bell said in the release. A copy of the earnings presentation can be found here. A link to a replay of Monday’s earnings conference call with Wall Street analysts can be found here.
Leidos-led Hanford Mission Integration Solutions has a $4 billion landlord service contract at DOE’s Hanford Site in Washington state. The contract began in August 2020 and the five-year base period ends in August 2025. The Department of Justice has sued the Leidos group for overbilling at Hanford based in part on whistleblower allegations. The Leidos-led joint venture, which includes Centerra and Parsons, has asked the court to toss the lawsuit.
Leidos is a junior partner: on Consolidated Nuclear Security, the prime contractor for the National Nuclear Security Administration’s Pantex Plant in Texas and Y-12 National Security Complex in Tennessee; and Northwind Dynamics, the Portsmouth Infrastructure Support contractor in Ohio.
There was no mention of the DOE weapons complex work during Tuesday’s conference call.
