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FLIR Systems (FLIR) Q3 Earnings Beat, Revenues Down Y/Y

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Zacks Equity Research
·4 min read
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FLIR Systems Inc.’s FLIR third-quarter 2020 adjusted earnings of 64 cents per share surpassed the Zacks Consensus Estimate of 56 cents by 14.3%. Also, the reported figure increased 10.3% from 58 cents in the prior-year quarter.

The company reported GAAP earnings of 46 cents per share, in line with the year-ago quarter’s earnings.

Operational Performance

FLIR Systems’ revenues declined 1% year over year to $466.4 million in the reported quarter. Moreover, the top line missed the Zacks Consensus Estimate of $471 million by 1%.

Total backlog at the end of the third quarter increased 10.9% to $898.7 million on a year-over-year basis.

The company’s total operating expenses declined 8.4% year over year to $142.3 million.

Adjusted operating income came in at $86.6 million compared with the operating income of $74.4 million in the third quarter of 2019.

Segment Update

Segment-wise, quarterly revenues in the Industrial Technologies segment were $281.1 million, representing an increase of 9% from the prior-year quarter. The increase was primarily attributable to heightened demand for EST solutions as a result of the COVID-19 pandemic and an increase in maritime product sales.

The Industrial Technologies segment’s operating income was $87.7 million compared with $63.7 million in the prior-year quarter. Segment operating margin increased to 31.2% from 24.7% in the prior-year quarter.

Revenues in the Defense Technologies segment were $181.3 million, which decreased 13.1% from the prior-year quarter. The decrease was primarily attributable to shipment timing and the completion of certain contracts that contributed to revenues in the prior-year quarter.

The Defense Technologies segment’s operating income was $38.8 million compared with $53.8 million in the prior-year quarter. Segment operating margin decreased to 20.9% from 25.2% in the prior-year quarter.

FLIR Systems, Inc. Price, Consensus and EPS Surprise

FLIR Systems, Inc. Price, Consensus and EPS Surprise
FLIR Systems, Inc. Price, Consensus and EPS Surprise

FLIR Systems, Inc. price-consensus-eps-surprise-chart | FLIR Systems, Inc. Quote

Liquidity & Cash Flow

As of Sep 30, 2020, the company’s cash and cash equivalents were $320 million compared with $284.6 million as of Dec 31, 2019.

Long-term debt totaled $715.2 million, up from $648.4 million as of Dec 31, 2019.

Cash flow from operating activities for the nine months ended Sep 30, 2020, amounted to $196.2 million compared with $276.8 million as of Sep 30, 2019.

Outlook 2020

FLIR Systems updated its financial guidance for 2020. The company currently expects to generate adjusted earnings per share of $2.30-$2.35 compared with the earlier guided range of $2.10-$2.30. Currently, the Zacks Consensus Estimate for 2020 earnings, pegged at $2.21, lies below the company-provided guidance.

The company currently expects to record revenues of $1.80-$1.90 billion compared with the prior guidance range of $1.85-$1.925 billion. The Zacks Consensus Estimate for 2020 revenues, pegged at $1.90 billion, lies above the midpoint of the company’s guidance.

Adjusted operating income margins are expected to be approximately 22.0%, from 20-21%.

Zacks Rank

FLIR Systems carries a Zacks Rank #4 (Sell).

Recent Defense Releases

Lockheed Martin LMT, a Zacks Rank #3 (Hold) company, reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Boeing Company BA, a Zacks Rank #3 company, incurred an adjusted loss of $1.39 per share for third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $2.33.

General Dynamics GD, a Zacks Rank #4 company, reported third-quarter 2020 earnings from continuing operations of $2.90 per share, which beat the Zacks Consensus Estimate of $2.85 by 1.8%.

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FLIR Systems, Inc. (FLIR) : Free Stock Analysis Report
 
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