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FLIR Systems (FLIR) Q3 Earnings Beat, Revenues Down Y/Y
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FLIR Systems Inc.’s 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
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 - Free Report) , 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 - Free Report) , 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 - Free Report) , 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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The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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FLIR Systems (FLIR) Q3 Earnings Beat, Revenues Down Y/Y
FLIR Systems Inc.’s 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-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 - Free Report) , 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 - Free Report) , 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 - Free Report) , 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%.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>