Leidos Holdings, Inc. LDOS posted third-quarter 2018 adjusted earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.10 by 3.6%. The bottom line also increased 20% from the year-ago number of 95 cents per share.The company reported GAAP earnings per share of 96 cents in the reported quarter, which soared 81.1% from the year-ago figure of 53 cents.Total RevenuesLeidos Holdings’ total revenues reaped $2,575 million in the quarter under consideration, which missed the Zacks Consensus Estimate of $2,636 million by 2.3%. However, the reported figure rose 2.9% year over year.Leidos Holdings, Inc. Price, Consensus and EPS Surprise Leidos Holdings, Inc. Price, Consensus and EPS Surprise | Leidos Holdings, Inc. QuoteBacklogAt the end of third-quarter 2018, the company’s backlog of signed business orders was $20.3 billion, of which $6.2 billion was funded.Operational StatisticsTotal cost of revenues in the reported quarter increased by 1.8% to $2,174 million. Operating income was $203 million compared with $151 million in the year-ago period.Operating margin increased to 7.9% from 6% in the prior-year quarter, primarily owing to a favorable contract mix along with decreases in integration and restructuring costs.Interest expenses were $35 million, in line with the year-earlier quarter’s figure.Segment PerformanceDefense Solutions: Net sales at the segment improved 4% to $1,249 million from the prior-year figure of $1,201 million. This upside was primarily attributable to ramped up volumes from new programs, which was partially offset by the completion of certain contracts.Also, operating income improved to $88 million from the year-ago income of $80 million with the operating margin having expanded 30 basis points (bps) to 7%.Health: The segment recorded net sales of $444 million in the comparable quarter last year, down 4.3%. This downtrend was primarily on the completion of certain contracts, coupled with lower level of commercial health revenues.Operating income also decreased 17.5% to $52 million along with the operating margin contracting 190 bps to 11.7%.Civil: Net sales at the segment were $882 million, up 5.3%. This uptick was primarily owing to expanded volumes from new programs.Operating income also skyrocketed 86% to $93 million along with the operating margin expanding 450 bps to 10.5%.FinancialsCash and cash equivalents as of Sep 28, 2018 were $515 million compared with $390 million as of Dec 29, 2017. Net cash provided by operating activities in the third quarter was $371 million compared with $267 million a year ago.2018 GuidanceFor 2018, Leidos Holdings has updated its outlook. The company expects its earnings to be in the range of $4.20 to $4.40 per share versus the prior range of $4.15 to $4.50. Revenues are expected between $10.1 billion and $10.3 billion compared with the prior range of $10.25 billion to $10.65 billion.Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin have been raised to the range of 10.2-10.4% compared with the prior range of 10.1% to 10.4%. The company has also provided its projection for cash flow by operating activities at $775 million or more compared with previous guidance of at or above $675 million.Zacks RankLeidos Holdings currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Defense ReleasesAerojet Rocketdyne Holdings, Inc. AJRD is expected to report third-quarter 2018 results on Nov 1. The Zacks Consensus Estimate for the quarterly earnings is pegged at 30 cents per share.Transdigm Group Incorporated TDG is set to release fourth-quarter fiscal 2018 results on Nov 8. The Zacks Consensus Estimate for the quarterly earnings stands at $4.27 per share.FLIR System, Inc. FLIR is scheduled to announce third-quarter 2018 results on Oct 30. The Zacks Consensus Estimate for the quarterly earnings is predicted at 57 cents per share.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report Transdigm Group Incorporated (TDG): Free Stock Analysis Report Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report FLIR Systems, Inc. (FLIR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research