UPDATE: Leidos Posts Upbeat Q1 Results

Leidos Holdings

reported a 52% drop in its fiscal first-quarter earnings. Leidos posted its quarterly earnings of $37 million, or $0.47 per share, versus $77 million, or $0.92 per share, in the year-earlier period. Its earnings from continuing operations climbed to $0.59 per share from $0.43 per share. Excluding certain items, its adjusted earnings from continuing operations jumped to $0.60 per share from $0.57 per share. Its revenue slipped 17% to $1.32 billion from $1.60 billion. However, analysts were projecting earnings of $0.54 per share on revenue of $1.26 billion. Leidos' national security solutions revenue declined 12% in the quarter, while health and engineering segment's revenue tumbled 27%. Corporate and Other segment operating loss came in at $13 million, versus a year-ago loss of $30 million. The company reported new business bookings of $857 million for the quarter with book-to-bill ratio of 0.6. Leidos also reiterated its forecast for the full year. John Jumper, Leidos Chairman and Chief Executive Officer said, "Our initiatives to improve profitability are gaining traction and starting to yield results. This quarter, Leidos's operating income margin and earnings per share increased compared to the prior year. We were able to achieve these results despite continued declines in overseas contingency operations revenues, a constrained federal funding environment and lower commercial revenues. Our management team continues to execute on our cost saving programs and portfolio shaping initiatives. We are committed to increase profitability, to leverage our assets and intellectual capital to enhance our competitiveness, and to generate strong cash flows to drive value for our shareholders." Leidos shares fell 1.43% to close at $37.94 yesterday.