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Leidos Holdings (NYSE:LDOS) on Tuesday rose 6.6% to a record high after the computer-services company reported quarterly results that were better than Wall Street’s estimates.
Revenue advanced 7.9% from a year earlier to $3.98 billion in the three-month period through March 29, compared with the consensus estimate of $3.82 billion.
Adjusted earnings of $2.29 a share beat the consensus estimate of $1.70 a share.
The company pointed to growth among its operating segments, especially its Health and Civil unit.
Management raised its guidance for adjusted earnings to $8.40 to $8.80 a share from a previous range of $7.50 to $7.90 a share for the full year. It also lifted revenue guidance to $16 billion to $16.4 billion from $15.7 billion to $16.1 billion previously.
The improved guidance reflects Congress’s approval of appropriation bills that set government spending.
“With funding in place, our customers have the resources and direction they need to confidently execute their missions,” Tom Bell, chief executive of Leidos (LDOS), said in a conference call with investors. “With that certainty in our customers’ budget, the quick success of our organizational realignment and our team’s strong start to the year, we have increased confidence in our near-term growth prospects.”
