FLIR Systems Inc.’s fourth-quarter 2019 adjusted earnings of 55 cents per share missed the Zacks Consensus Estimate of 62 cents by 11.3%. The reported figure also declined 11.3% from the 62 cents registered in the prior-year quarter.
Excluding the one-time items, the company reported GAAP earnings of a penny compared with the earnings of 71 cents recorded in the year-ago quarter.
The company’s 2019 adjusted earnings of $2.23 per share missed the Zacks Consensus Estimate of $2.30 by 3%. However, the reported figure edged down 0.5% from the prior-year tally of $2.22.
Total Revenues
FLIR Systems’ revenues increased 9% year over year to $489 million in the reported quarter. Improved sales performance of the Industrial and Government and Defense business segments primarily resulted in this year-over-year top-line growth. The top line, however, missed the Zacks Consensus Estimate of $500.2 million by 2.2%.
Meanwhile, Organic revenues decreased 1.5%, which excludes revenues from acquisitions within the last 12 months.
FLIR Systems’ 2019 revenues climbed 6.3% to $1,887 million from the prior-year tally of $1,775.7 million. The top-line figure, however, missed the Zacks Consensus Estimate of $1,900 million by 0.7%. Organic revenue growth was 1.1%, which excludes revenues from acquisitions within the last 12 months and security business divestitures.
Segment Details
In the Industrial segment, revenues totaled $192.8 million, up 6.1% on a year-over-year basis. The upside can be attributed to increased sales on continued strength in cooled cameras and components as well as machine vision. Operating income was $63.5 million, 10.9% higher than the fourth-quarter 2018 tally.
In the Government and Defense segment, revenues summed $210.7 million, up 23.1% on a year-over-year basis. This upswing resulted from increased contributions from the successful acquisitions of Aeryon Labs and Endeavor Robotics. Operating income for the December-end quarter decreased 0.4% year on year to of $53.9 million.
The Commercial segment’s revenues slid 10.6% to $85.5 million from the year-ago period. The segment’s revenues were adversely impacted by lower sales volume in the Outdoor and Tactical Systems and Security product businesses. Operating income was $12.2 million, which fell 19.4% compared with the year-ago quarter’s income.
Adjusted operating income came in at $103.9 million compared with the prior-year quarter’s $107.9 million, reflecting a 3.8% decline. Also, the company’s total operating expenses flared up 25.9% year over year to $178.6 million.
FLIR Systems, Inc. Price, Consensus and EPS Surprise
Liquidity & Cash Flow
As of Dec 31, 2019, the company's cash and cash equivalents were $284.6 million compared with $512.1 million as of Dec 31, 2018.
Long-term debt summed $648.4 million on Dec 31, 2019, significantly up from $421.9 million on Dec 31, 2018.
Cash flow generated from operating activities at the end of 2019 amounted to $370.4 million compared with the prior-year tally of $374.1 million.
Outlook
FLIR Systems has issued its guidance for 2020. The company projects adjusted earnings per share at $2.10-$2.30 on revenues of $1.85-$1.925 billion.
Currently, the Zacks Consensus Estimate for 2020 earnings is pegged at $2.56 on revenues of $2 billion. Both earnings and revenue estimates come in above the projected range of the company’s guidance.
Zacks Rank
FLIR Systems carries a Zacks Rank #3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) posted fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came in above the guided range of $2.71-$2.76 for the reported quarter.
Lockheed Martin Corp. (LMT - Free Report) recorded earnings of $5.29 per share for the final quarter of 2019, outpacing the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from the year-ago quarter’s $4.39.
General Dynamics Corporation’s (GD - Free Report) delivered earnings from continuing operations of $3.51 per share for the October-December period, which beat the Zacks Consensus Estimate of $3.46 by 1.45%.
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FLIR Systems Inc.’s fourth-quarter 2019 adjusted earnings of 55 cents per share missed the Zacks Consensus Estimate of 62 cents by 11.3%. The reported figure also declined 11.3% from the 62 cents registered in the prior-year quarter.
Excluding the one-time items, the company reported GAAP earnings of a penny compared with the earnings of 71 cents recorded in the year-ago quarter.
The company’s 2019 adjusted earnings of $2.23 per share missed the Zacks Consensus Estimate of $2.30 by 3%. However, the reported figure edged down 0.5% from the prior-year tally of $2.22.
Total Revenues
FLIR Systems’ revenues increased 9% year over year to $489 million in the reported quarter. Improved sales performance of the Industrial and Government and Defense business segments primarily resulted in this year-over-year top-line growth. The top line, however, missed the Zacks Consensus Estimate of $500.2 million by 2.2%.
Meanwhile, Organic revenues decreased 1.5%, which excludes revenues from acquisitions within the last 12 months.
FLIR Systems’ 2019 revenues climbed 6.3% to $1,887 million from the prior-year tally of $1,775.7 million. The top-line figure, however, missed the Zacks Consensus Estimate of $1,900 million by 0.7%. Organic revenue growth was 1.1%, which excludes revenues from acquisitions within the last 12 months and security business divestitures.
Segment Details
In the Industrial segment, revenues totaled $192.8 million, up 6.1% on a year-over-year basis. The upside can be attributed to increased sales on continued strength in cooled cameras and components as well as machine vision. Operating income was $63.5 million, 10.9% higher than the fourth-quarter 2018 tally.
In the Government and Defense segment, revenues summed $210.7 million, up 23.1% on a year-over-year basis. This upswing resulted from increased contributions from the successful acquisitions of Aeryon Labs and Endeavor Robotics. Operating income for the December-end quarter decreased 0.4% year on year to of $53.9 million.
The Commercial segment’s revenues slid 10.6% to $85.5 million from the year-ago period. The segment’s revenues were adversely impacted by lower sales volume in the Outdoor and Tactical Systems and Security product businesses. Operating income was $12.2 million, which fell 19.4% compared with the year-ago quarter’s income.
Adjusted operating income came in at $103.9 million compared with the prior-year quarter’s $107.9 million, reflecting a 3.8% decline. Also, the company’s total operating expenses flared up 25.9% year over year to $178.6 million.
FLIR Systems, Inc. Price, Consensus and EPS Surprise
Liquidity & Cash Flow
As of Dec 31, 2019, the company's cash and cash equivalents were $284.6 million compared with $512.1 million as of Dec 31, 2018.
Long-term debt summed $648.4 million on Dec 31, 2019, significantly up from $421.9 million on Dec 31, 2018.
Cash flow generated from operating activities at the end of 2019 amounted to $370.4 million compared with the prior-year tally of $374.1 million.
Outlook
FLIR Systems has issued its guidance for 2020. The company projects adjusted earnings per share at $2.10-$2.30 on revenues of $1.85-$1.925 billion.
Currently, the Zacks Consensus Estimate for 2020 earnings is pegged at $2.56 on revenues of $2 billion. Both earnings and revenue estimates come in above the projected range of the company’s guidance.
Zacks Rank
FLIR Systems carries a Zacks Rank #3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies Inc. (TDY - Free Report) posted fourth-quarter 2019 adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $2.76 by 5.1%. The bottom-line figure came in above the guided range of $2.71-$2.76 for the reported quarter.
Lockheed Martin Corp. (LMT - Free Report) recorded earnings of $5.29 per share for the final quarter of 2019, outpacing the Zacks Consensus Estimate of $4.99 by 6%. The bottom line also improved 20.5% from the year-ago quarter’s $4.39.
General Dynamics Corporation’s (GD - Free Report) delivered earnings from continuing operations of $3.51 per share for the October-December period, which beat the Zacks Consensus Estimate of $3.46 by 1.45%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
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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