On Oct 18, Zacks Investment Research downgraded FLIR Systems, Inc. (FLIR - Analyst Report) to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
FLIR Systems has witnessed sharp downward estimate revisions after announcing its preliminary third quarter results on Oct 15, 2013. The company’s third quarter earnings were negatively impacted by instability in the U.S. federal government. The company’s shipments in its Surveillance, Thermal Vision and Measurement segments were negatively affected by the government’s extension of procurement and export licensing processes. The company’s margins were also impacted by the negative product mix and low factory absorption in its businesses.
FLIR Systems expects its third-quarter 2013 revenue guidance to be in the range of $358 million to $360 million, while the earnings were revised to be the range of 32 cents to 33 cents per share. The company also lowered its 2013 revenue guidance from the previous $1.5 billion–$1.6 billion to $1.45 billion–$1.5 billion and the earnings were reduced to $1.38–$1.43 from the prior range of $1.56–$1.66 per share.
FLIR Systems is an Oregon corporation and was incorporated in 1978. It is a leader in design, manufacture and marketing of thermal imaging systems. Its products are used in a wide variety of applications in commercial, industrial and government markets, internationally as well as domestically. It offers a variety of system configurations to suit specific customer requirements. The company’s business is organized into three divisions: Government Systems, Commercial Vision Systems and Thermography Products.
Other Stocks to Consider
Some other companies in the industry that are worth considering at the moment include Raytheon Co. (RTN - Analyst Report), HEICO Corporation (HEI - Snapshot Report) and Honeywell International Inc. (HON - Analyst Report),all three having a Zacks Rank #2 (Buy).