Leidos reports sales, profit gains

Leidos announced Thursday that sales in its most recent quarter rose 2 percent to hit $1.3 billion, while profit soared 44 percent to reach $49 million.

In particular, its national security solutions unit saw its profit rise, even though sales fell slightly.

Leidos attributed the sales drop to Overseas Contingency Operations work. OCO-designated work provided $44 million in revenue for the quarter, half the amount it provided during the same period the prior year.

The contractor attributed the profit boost to "improved execution and reduced indirect costs."

Jim Reagan, Leidos' chief financial officer, told analysts during a Thursday morning call the company believes "we have turned the corner to growth in NSS."