Feb 17 (Reuters) – Protection contractor Leidos Holdings reported fourth-quarter income under Wall Road estimates, because the six-week lengthy U.S. authorities shutdown final yr weighed on the agency’s orders.
The shutdown, the longest within the nation’s historical past, led to November after severely disrupting authorities operations and weighing on contractors akin to Leidos, which offers IT, weapons and different companies to federal businesses.
Shares of Leidos, which additionally provides air visitors management methods to the Federal Aviation Administration, fell 1.6% in premarket buying and selling.
Final month, protection provider L3Harris Applied sciences additionally flagged successful from the shutdown, largely in its area methods enterprise.
Leidos’ income in the course of the fourth quarter got here in at $4.21 billion, down 3.6% from final yr, and decrease than analysts’ estimates of $4.31 billion, in accordance with knowledge compiled by LSEG.
Outcomes additionally took successful from a 9.3% drop in gross sales in its well being and civil section, which offers digital well being document methods to each the Division of Protection and Veteran Affairs hospitals.
On an adjusted foundation, nonetheless, the Reston, Virginia-based firm’s fourth-quarter revenue per share of $2.76 beat expectations of $2.61, helped by a 160-basis level enlargement in its adjusted core revenue margin and elevated price controls.
Leidos forecast 2026 adjusted revenue between $12.05 and $12.45 per share, the midpoint of which is 4 cents decrease than analysts’ estimates of $12.29.
(Reporting by Aishwarya Jain in Bengaluru; Enhancing by Devika Syamnath)