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FLIR Systems (FLIR) to Report Q1 Earnings: What's in Store?

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FLIR Systems Inc. is set to report first-quarter 2021 financial results on May 6, before market open.

In the last reported quarter, the company delivered an earnings surprise of 23.81%. Moreover, it surpassed the Zacks Consensus Estimate in three out of the trailing four quarters and matched once, with an average surprise of 16.53%.

Let's take a closer look at the factors influencing FLIR Systems’ quarterly results.

Factors Under Consideration

Rising demand for thermal cameras for EST screening applications amid the pandemic has been steadily boosting FLIR Systems’ revenues over the past few quarters. Notably, the company has been extensively ramping up the production of EST solutions to help prevent the spread of the virus. The continuation of this trend might have benefited its first-quarter revenues as well.

Interestingly, revenues from international customers have also escalated in recent times, which is likely to have positively impacted its top line in the first quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $462.9 million, indicating growth of 2.7% from the year-ago quarter’s reported figure.

As the economy is gradually recovering from the adverse effects of the pandemic, the company has been incurring lower marketing and travel costs associated with the COVID-19 pandemic since the third quarter of 2020. We expect the first-quarter results to benefit from the same.

The Zacks Consensus Estimate for FLIR Systems’ first-quarter earnings is pegged at 53 cents per share, implying a 26.2% improvement from the year-ago quarter’s reported figure.

In February, Teledyne Technologies (TDY - Free Report) and FLIR Systems entered a definitive agreement, in which the latter agreed to acquire the former for $8 billion. We expect the upcoming announcement to shed light on the developments on this agreement, if any.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for FLIR Systems this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FLIR Systems carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLIR Systems, Inc. Price and EPS Surprise

A Stock to Consider

Here is a defense stock you may want to consider, as it has the right combination of elements to post an earnings beat in its upcoming release:

Triumph Group, Inc. (TGI - Free Report) has an Earnings ESP of +9.80% and a Zacks Rank #3.

A Recent Defense Release

Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2021 earnings of $6.56 per share, which surpassed the Zacks Consensus Estimate of $6.32 by 3.8%.

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