FLIR Systems Inc.’s third-quarter 2018 adjusted earnings of 57 cents per share came in line with the Zacks Consensus Estimate. The reported figure increased 9.6% from the prior-year quarterly tally of 52 cents, courtesy of lower operating expenses.
Excluding the one-time items, the company reported GAAP earnings of 52 cents compared with 46 cents registered in the year-ago quarter.
Inside the Headlines
FLIR Systems’ revenues declined 6.4% year over year to $434.9 million. The top line also missed the Zacks Consensus Estimate of $446.2 million by 2.5%. Disappointing sales performance by the Commercial segment led to the overall top line deceleration.
Organic revenues increased 3.1% from the prior year quarter number, excluding revenues from acquisitions and the previously disclosed divested security businesses.
Segment-wise, revenues at the Industrial segment increased 3.6% year over year to $177.2 million. The improvement was primarily driven by increased sales of automotive, unmanned aerial systems (UAS) and optical gas imaging products. At the Government and Defense segment, revenues totaled $172 million, up 1.3% on a year-over-year basis. The uptick can be attributed to increased deliveries of gimbaled and UAS systems.
However, the Commercial segments’ revenues plunged 30.8% to $85.8 million from the year-ago period.
Adjusted operating income came in at $106 million compared with $101.1 million in the prior-year quarter, reflecting a growth of 4.8%. The company’s operating expenses decreased 1.7% year over year to $133.5 million.
Liquidity & Cash Flow
As of Sep 30, 2018, the company's cash and cash equivalents were $593.3 million compared with $519.1 million as of Dec 31, 2017. Long-term debt came in at $421.6 million, marginally up from $420.7 million on Dec 31, 2017.
Cash flow generated from operating activities in the quarter amounted to $122.5 million, up from $104.1 million in the prior-year period.
Outlook
FLIR Systems reiterated its guidance for 2018. The company continues to project adjusted earnings per share in the range of $2.17-$2.22 per share on revenues of $1.78-$1.80 billion.
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.
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Northrop Grumman Corporation (NOC - Free Report) delivered third-quarter 2018 earnings of $6.54 per share, beating the Zacks Consensus Estimate of $4.35 by 50.4%. The company recorded total revenues of $8.09 billion, surpassing the Zacks Consensus Estimate of $8 billion by 1%.
Textron (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%. The bottom line also decreased 6.2% from 65 cents in the year-ago quarter.
Boeing (BA - Free Report) reported adjusted earnings of $3.58 per share for third-quarter 2018, beating the Zacks Consensus Estimate of $3.45 by 3.8%. The bottom line reflected an improvement of 36.6% from $2.62 in the year-ago quarter.
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FLIR Systems Inc.’s third-quarter 2018 adjusted earnings of 57 cents per share came in line with the Zacks Consensus Estimate. The reported figure increased 9.6% from the prior-year quarterly tally of 52 cents, courtesy of lower operating expenses.
Excluding the one-time items, the company reported GAAP earnings of 52 cents compared with 46 cents registered in the year-ago quarter.
Inside the Headlines
FLIR Systems’ revenues declined 6.4% year over year to $434.9 million. The top line also missed the Zacks Consensus Estimate of $446.2 million by 2.5%. Disappointing sales performance by the Commercial segment led to the overall top line deceleration.
Organic revenues increased 3.1% from the prior year quarter number, excluding revenues from acquisitions and the previously disclosed divested security businesses.
Segment-wise, revenues at the Industrial segment increased 3.6% year over year to $177.2 million. The improvement was primarily driven by increased sales of automotive, unmanned aerial systems (UAS) and optical gas imaging products. At the Government and Defense segment, revenues totaled $172 million, up 1.3% on a year-over-year basis. The uptick can be attributed to increased deliveries of gimbaled and UAS systems.
However, the Commercial segments’ revenues plunged 30.8% to $85.8 million from the year-ago period.
Adjusted operating income came in at $106 million compared with $101.1 million in the prior-year quarter, reflecting a growth of 4.8%. The company’s operating expenses decreased 1.7% year over year to $133.5 million.
Liquidity & Cash Flow
As of Sep 30, 2018, the company's cash and cash equivalents were $593.3 million compared with $519.1 million as of Dec 31, 2017. Long-term debt came in at $421.6 million, marginally up from $420.7 million on Dec 31, 2017.
Cash flow generated from operating activities in the quarter amounted to $122.5 million, up from $104.1 million in the prior-year period.
Outlook
FLIR Systems reiterated its guidance for 2018. The company continues to project adjusted earnings per share in the range of $2.17-$2.22 per share on revenues of $1.78-$1.80 billion.
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 Releases
Northrop Grumman Corporation (NOC - Free Report) delivered third-quarter 2018 earnings of $6.54 per share, beating the Zacks Consensus Estimate of $4.35 by 50.4%. The company recorded total revenues of $8.09 billion, surpassing the Zacks Consensus Estimate of $8 billion by 1%.
Textron (TXT - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%. The bottom line also decreased 6.2% from 65 cents in the year-ago quarter.
Boeing (BA - Free Report) reported adjusted earnings of $3.58 per share for third-quarter 2018, beating the Zacks Consensus Estimate of $3.45 by 3.8%. The bottom line reflected an improvement of 36.6% from $2.62 in the year-ago quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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