FLIR Systems' (FLIR) Q1 Earnings Match Estimates, Down Y/Y
FLIR Systems Inc.’s FLIR first-quarter 2020 adjusted earnings of 42 cents per share came in line with the Zacks Consensus Estimate. The figure, however, declined 20.8% from 53 cents reported in the prior-year quarter.
The company reported GAAP earnings of 11 cents compared with earnings of 45 cents in the year-ago quarter.
Inside the Headlines
FLIR Systems’ revenues inched up 1.4% year over year to $450.9 million in the reported quarter. Also, the top line beat the Zacks Consensus Estimate of $439 million by 2.7%. Impressive performance by the Industrial Technologies and the Defense Technologies segments led to the year-over-year increase in the top line.
Segment-wise, revenues in the Industrial Technologies segment were up 1.9% to $276.4 million. The upside can be attributed to heightened demand for EST cameras as a result of the COVID-19 pandemic.
Revenues in the Defense Technologies segment totaled $174.5 million, up 0.7% on a year-over-year basis. The upside can be attributed to contributions of unmanned revenues from the Aeryon Labs and Endeavor Robotics acquisitions.
FLIR Systems, Inc. Price, Consensus and EPS Surprise
FLIR Systems, Inc. price-consensus-eps-surprise-chart | FLIR Systems, Inc. Quote
Operational Statistics
The company recorded a total backlog of $859.3 million at the end of the first quarter of 2020, reflecting a 2.8% increase relative to the prior-year quarter.
The company’s total operating expenses grew 24.9% year over year to $190.9 million. Operating income for the quarter was $28.5 million compared with $81.1 million in the prior-year quarter.
Operating margin decreased to 6.3% from 18.2% in the prior-year quarter, primarily attributable to product mix in the Defense Technologies segment and increases in restructuring costs, consent agreement costs, research and development expenses, and deferred compensation costs.
Liquidity & Cash Flow
As of Mar 31, 2020, the company's cash and cash equivalents were $308.6 million compared with $284.6 million, as of Dec 31, 2019.
Long-term debt, net of current portion, totaled $636.3 million, down from $648.4 million, as of Dec 31, 2019.
Cash flow from operating activities in the first quarter of 2020 amounted to $50.9 million compared with the prior-year quarter’s $55.5 million.
Outlook
FLIR Systems has withdrawn its previously-issued guidance for 2020 due to the uncertainties concerning the COVID-19 pandemic.
Zacks Rank
FLIR Systems carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Release
Lockheed Martin Corp. LMT, a Zacks Rank #3 company, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99.
General Dynamics Corporation GD, a Zacks Rank #3 company, reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%.
Moreover, earnings declined 5.1% from $2.56 in the year-ago quarter.
Teledyne Technologies Inc. TDY, a Zacks Rank #3 company, reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
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