(Reuters) – U.S. defense company Leidos Holdings lifted its annual profit and revenue forecasts on Tuesday, banking on strong weapons demand and increased defense spending amid growing geopolitical tensions.
Defense companies are seeing robust demand for weapons from the United States and its allies following Russia’s invasion of Ukraine, conflict in the Middle East and rising tensions in the South China Sea.
Leidos, engaged in hypersonic weapons development, among others, expects its adjusted full-year profit per share to be between $8.40 and $8.80, compared with its previous forecast range of $7.50 to $7.90.
The Reston, Virginia-based company, which counts the U.S. Department of Defense as its primary customer, also lifted its 2024 revenue forecast range to $16 billion to $16.4 billion, versus $15.7 billion to $16.1 billion projected in January.
Leidos’ adjusted profit for the first quarter was at $2.29 per share, compared with $1.47 per share a year ago.
Its quarterly revenue jumped 7.4% to $3.98 billion.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Shilpi Majumdar)
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