After a string of standout quarters, Leidos delivered one for the 4th quarter of 2017 that was merely 'solid.' Though much of the margin and profitability improvement stemming from the merger which formed the company two years ago is behind it, it will have a strong tailwind behind it for 2018 and 2019 in the form of a significantly increased Department of Defense Budget. Though the company cautions that the effects of the increased military spending will not be immediate, there is likely a lot of business to be won in the months and years ahead, and the combined company's enhanced capabilities appear to make it a more formidable competitor for projects that are out for bid.
Brookfield Infrastructure Partners
BIP reported a quarter which came up a little short of analyst expectations, but with a healthy hike to the dividend (which increased about 8% for 2018), investors shrugged off the results. Going forward, the company's strategy will shift a bit: it will be more active in 'recycling' its capital (that is, selling appreciated assets) and reinvesting the proceeds in higher return projects. To that end, it sold its 28% stake in Transelec (the Chilean power transmission company) for $1.3 billion at the end of 2017. It also expects to reduce the number of acquisitions it makes and instead focus more on expansion of its existing projects.
IQVIA
IQVIA reported a very strong quarter, sending shares up 8% in an otherwise flat market. Simply put, the company continues to execute very well, and the strategy borne out of the merger is coming to fruition. 4Q 2017 were up 10.7% while earnings per share rose 28%. Guidance provided for the year ahead was somewhat better than what analysts had been forecasting as the company expects earnings to grow about 17% in 2017.