What happened
Leidos Holdings (LDOS 0.76%), a company that provides information technology, engineering, and science solutions services to defense, intelligence, homeland security, civil, and health markets, saw its stock jump on Tuesday. Shares finished the trading day up nearly 10%.
The stock's gain follows Leidos' first-quarter results, which included better-than-expected revenue and non-GAAP earnings per share.
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So what
Leidos reported revenue of $2.58 billion, up from $2.43 billion in the year-ago quarter. Meanwhile, non-GAAP EPS rose from $1.03 to $1.13. These results were ahead of analysts' average forecast for revenue and non-GAAP EPS of $2.48 billion and $1, respectively.
"We delivered a solid Q1 and executed well on our growth strategy while maintaining rigorous discipline on profitability and cash generation," said Leidos CEO Roger Krone in the company's first-quarter earnings release.
Now what
Management reiterated its guidance for full-year revenue between $10.5 billion and $10.9 billion, but it boosted its outlook for both non-GAAP EPS and operating cash flow. Leidos now expects non-GAAP EPS for the year to be between $4.30 and $4.65, up from previous guidance for $4.25 to $4.60. In addition, Leidos now expects operating cash flow at or above $825 million, up from a previous forecast for $725 million or greater.
The revised guidance reflects Leidos' "year-to-date performance and updated expectations," management said in its first-quarter earnings release.
