Leidos lifts 2024 profit target as global conflicts fuel weapons demand

(Reuters) - Defense contractor Leidos raised its annual profit forecast on Tuesday, banking on strong worldwide weapons demand and increased defense spending amid growing geopolitical tensions.

Shares of the company were up around 2% in light volumes before the bell.

The ongoing war in Ukraine has driven strong global demand for U.S. weaponry, with nations actively negotiating and securing deals to acquire arms and expedite existing contracts.

The U.S. Congress's approval of an additional $95 billion in funding in April - including aid for replenishing U.S. stockpiles in Ukraine and Israel - has further boosted defense companies.

The U.S. Department of Defense is a primary customer for the Reston, Virginia-based company.

Leidos, which is engaged in the development of hypersonic weapons, among others, expects its 2024 per-share profit to be between $8.6 and $9, compared to its previous forecast range of $8.4 per share to $8.8 per share.

Leidos's profit was $2.37 per share for the second quarter, compared to $1.50 per share a year ago. Its quarterly revenue jumped 8%, to $4.13 billion.

(Reporting by Pratyush Thakur in Bengaluru; Editing by Pooja Desai)