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(Reuters) - Defense contractor Leidos Holdings on Tuesday beat Wall Street estimates for first-quarter profit and revenue, helped by the robust demand for weapon systems.
Rising geopolitical tensions around the world and expectations of a higher U.S. defense budget under President Donald Trump have boosted the market for weapons.
Leidos, which provides technology and engineering services to government agencies as well as commercial clients, posted a 7% rise in first-quarter revenue of $4.25 billion from a year ago due to increased demand across customer segments.
Analysts on average were expecting quarterly revenue of $4.10 billion, according to data compiled by LSEG.
The Reston, Virginia-based company's adjusted profit was $2.97 per share during the three months ended April 4, compared with estimates of $2.50.
Higher sales of health services programs and cost-control measures were the primary drivers of its increased profitability during the quarter, Leidos said.
The company reiterated its annual revenue forecast of $16.90 to $17.30 billion and full-year adjusted profit view of $10.35 to $10.75 per share.
(Reporting by Utkarsh Shetti and Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)