Leidos reports quarterly sales, profit boost

February 19, 2019 at 9:42 AM

Leidos said today sales during its most recent quarter reached $2.7 billion, up about 5 percent from the same three-month period a year earlier. Quarterly profit hit $188 million, up 65 percent from the prior year.

Leidos said quarterly sales in its defense solutions group reached $1.3 billion, up nearly 4 percent from a year earlier. “The revenue growth was primarily attributable to new awards,” the company said.

For 2018, Leidos' sales reached $10.2 billion, essentially flat from 2017. The contractor recorded profit for the year of $581 million, up 59 percent from 2017.

The company said 2018 sales in its defense solutions business were just shy of $5 billion, nearly the same as the prior year.  

During a call with analysts this morning, Jim Reagan, Leidos' chief financial officer, said the contractor is more interested in acquiring products companies than services contractors.

“We don't need more of what we've got,” he said. “The things that we're looking for to build the company inorganically would be the kind of company with both a services and product differentiator.”

“A pure products company could also be of interest to us, but I would say the ones we've been interested in to this point tend to have some sort of service element to them,” he added.

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