(Reuters) – U.S. defense contractor Leidos Holdings on Tuesday raised its full-year profit and revenue forecasts on the back of strong weapons demand amid rising geopolitical tensions.
Defense companies have seen robust demand for weapons from the U.S. and its allies following Moscow’s invasion of Ukraine and rising geopolitical tensions in Asia.
The Reston, Virginia-based company now expects 2023 revenue of between $15.1 billion and $15.3 billion, above its previous forecast of $14.9 billion to $15.2 billion.
It expects annual adjusted profit of between $6.80 and $7.10 per share, compared with a prior range of $6.40 to $6.80 per share.
Leidos posted a net loss of $396 million, or $2.91 per share, for the third quarter, reflecting a one-time impairment charge of $699 million related to its Security Enterprise Solutions (SES) reporting unit.
Excluding one-off items, quarterly adjusted profit was $2.03 per share, beating analysts’ average estimate of $1.67 per share, according to LSEG data.
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The defense contractor reported quarterly revenue of $3.92 billion, ahead of analysts’ forecast of $3.77 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; editing by Milla Nissi)