Leidos Holdings (LDOS) has reported 35.85 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $72 million, or $0.47 a share in the quarter, compared with $53 million, or $0.72 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $134 million, or $0.88 a share compared with $57 million or $0.77 a share, a year ago.
Revenue during the quarter surged 96.65 percent to $2,580 million from $1,312 million in the previous year period. Gross margin for the quarter contracted 3 basis points over the previous year period to 12.02 percent. Total expenses were 94.53 percent of quarterly revenues, up from 93.22 percent for the same period last year. That has resulted in a contraction of 132 basis points in operating margin to 5.47 percent.
Operating income for the quarter was $141 million, compared with $89 million in the previous year period.
However, the adjusted operating income for the quarter stood at $242 million compared to $99 million in the prior year period. At the same time, adjusted operating margin improved 183 basis points in the quarter to 9.38 percent from 7.55 percent in the last year period.
Roger Krone, Leidos chairman and chief executive officer, commented: "The Company had a good start to the year with first quarter performance exceeding our expectations on revenue, margins and earnings per share. The diverse mix of our business, as well as our focus on execution of both customer programs and cost reduction initiatives, enabled these strong results, and reinforces our confidence in our previously issued full year guidance. We remain committed to focusing on growth, profitability, and cash generation to deliver value to our customers, employees and shareholders."
For financial year 2017, Leidos Holdings projects revenue to be in the range of $10,000 million to $10,400 million. The company forecasts diluted earnings per share to be in the range of $3.05 to $3.35 on adjusted basis.
Operating cash flow remains negativeLeidos Holdings has spent $88 million cash to meet operating activities during the quarter as against cash outgo of $14 million in the last year period. The company has spent $5 million cash to meet investing activities during the quarter as against cash outgo of $1 million in the last year period.
The company has spent $77 million cash to carry out financing activities during the quarter as against cash outgo of $31 million in the last year period.
Cash and cash equivalents stood at stood at $206 million as at Mar. 31, 2017.
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