The shares of Leidos (NYSE: LDOS) jumped nearly eight percent on the last trading day of October after the defense contractor presented its third quarter of fiscal year 2023 results. In the three months that ended Sept. 29, 2023, revenues rose nine percent to $3.9 billion versus Q3 2022.
The total backlog at the quarter’s end was $38 billion, or $3 billion higher than a year ago. However, Leidos incurred a net loss of $396 million during the quarter due primarily to a one-time impairment charge of $699 million related to its Security Enterprise Solutions reporting unit.
“Our third quarter financial results build on the momentum from last quarter and are the direct result of our entire team being aligned on our direction and intent on delivering against our commitments,” said Leidos CEO Thomas Bell.
The hefty backlog includes the $7.9 billion Common Hardware Systems 6th Generation contract from the U.S. Army and the $918 million Homeland Enterprise Information Technology Secure Services and Support award from the Department of Homeland Security.
Leidos maintains a positive outlook, considering robust weapons demand amid an ongoing war. The company will sharpen its strategy to align the organization better.
For the full fiscal year 2023, the updated revenue guidance is $15.1 billion to $15.3 billion, with cash flows provided by operating activities at or above $850 million.
