Leidos lifts annual forecasts on robust defense demand

(Reuters) - U.S. defense contractor Leidos Holdings raised its annual profit and revenue forecasts on Tuesday, banking on strong worldwide weapons demand amid growing geopolitical tensions.

Shares of the company, which develops hypersonic weapons and other arms, were up 6% before the opening bell.

The ongoing Middle East crisis and the Russia-Ukraine war have fueled a global surge in defense spending as countries sought out weaponry contracts, benefiting companies such as Leidos, Lockheed Martin and RTX.

Peers Northrop Grumman, Lockheed Martin and RTX also raised their 2024 earnings forecasts last week.

Reston, Virginia-based Leidos, whose primary customer is the U.S. Department of Defense, expects its 2024 profit to be between $9.80 and $10 per share, compared with its prior view of $8.60 to $9.

The company also lifted its full-year revenue forecast to the range of $16.35 billion to $16.45 billion from $16.10 billion to $16.40 billion projected earlier.

Leidos' profit came in at $2.93 per share for the third quarter ended Sept. 27, compared with analysts' average estimate of $2.02, according to data compiled by LSEG.

Its quarterly revenue rose about 7% to $4.19 billion from a year ago, topping a Wall Street estimate of $4.06.

(Reporting by Pratyush Thakur in Bengaluru; Editing by Shreya Biswas)

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