Has Telephone and Data Systems (TDS) Outpaced Other Utilities Stocks This Year?
A month has gone by since the last earnings report for FLIR Systems, Inc. FLIR. Shares have added about 1.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is FLIR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
FLIR Systems Beats on Q4 Earnings, Issues 2018 View
FLIR Systems Inc.’s fourth-quarter 2017 adjusted earnings per share came in at 58 cents, surpassing the Zacks Consensus Estimate of 56 cents. The reported figure increased 11.5% from the prior-year quarter figure on the back of solid top-line growth.
Adjusted net income in the quarter came in at $81.8 million compared with $71.9 million in the year-ago quarter. The year-over-year improvement can primarily be attributed to the company’s impressive top-line performance.
For full-year 2017, net earnings increased 12.3% to $262.6 million.
Inside the Headlines
FLIR Systems' top line grew 4.2% year over year to $494.8 million. However, the figure missed the Zacks Consensus Estimate of $501 million. Solid growth in four of the company’s segments led to the year-over-year improvement, which more than offset the sales decline in the Surveillance and Security segment.
For full-year 2017, revenues rose 8.3% over the prior year to a record level of $1.8 billion.
As for the segments, OEM & Emerging Markets revenues were up an impressive 15.2% over the prior-year quarter to $87.7 million while Maritime revenues recorded growth of 14.5% year over year to $43.8 million. However, revenues at the Surveillance segment were down 4.7% year over year to $151 million. Also, the same from the Security segment declined 2.9% from the prior-year quarter to $71 million.
In addition, Instruments revenues recorded growth of 6.9% year over year to $102.6 million. Revenues from the Detection segment also increased 18.3% year over year to $38.7 million.
FLIR Systems' backlog of firm orders for delivery within the next 12 months came in at $652 million, reflecting an increase of 10% from the tally at the end of year-ago quarter.
Adjusted operating income came in at $111.7 million compared with $103.2 million in the prior-year quarter.
Liquidity & Cash Flow
As of Dec 31, 2017, the company's cash and cash equivalents were $519.1 million compared with $361.3 million a year ago. Long-term debt decreased to $420.7 million compared with $501.9 million as at Dec 31, 2016.
Cash flow generated from operating activities in the quarter came in at $98.9 million, higher than $97.1 million in the year-earlier quarter.
Concurrent with the earnings report, FLIR Systems approved a quarterly cash dividend of 16 cents per share reflecting an increase of 7% over the previous quarterly dividend of 15 cents per share. The dividend is payable on Mar 9, 2018, to shareholders of record as on Feb 23.
FLIR Systems provided its guidance for 2018. It expects adjusted earnings to lie in the range of $2.05-$2.10 per share on revenues of $1.73-$1.76 billion. The figures represent year-over-year growth of about 9-12% in adjusted earnings and 4-6% increase in revenues.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
FLIR Systems, Inc. Price and Consensus
FLIR Systems, Inc. Price and Consensus | FLIR Systems, Inc. Quote
At this time, FLIR has a nice Growth Score of B, a grade with the same score on the momentum front. The stock was also allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
FLIR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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