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FLIR Systems Wins Order from U.S. Department of Defense
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FLIR Systems, Inc. recently announced that the company has clinched a delivery order worth $54.2 million from the U.S. Department of Defense. The five-year indefinite delivery, indefinite quantity (“IDIQ”) contract will extend throughout second-quarter 2018. This contract win highlights the company’s robust government and military business, which has proved to be a major profit churner in recent times.
The thermal imaging cameras and image sensor maker received the contract for 50 U.S. Army Chemical, Biological, Radiological, and Nuclear Dismounted Reconnaissance Sets, Kits, and Outfits (“CBRN DR-SKO”) systems. The CBRN DR-SKO system is a collection of mission-specific kits which offer “CBRN dismounted reconnaissance” capability deployed by the U.S. Military Joint Services, including Army, Navy, Air Force, Marines.
FLIR Systems has been a long-time partner of the CBRN DR-SKO, offering contracting services. The company has delivered over 100 systems to the U.S. Department of Defense since it was awarded the CBRN DR-SKO IDIQ in Dec 2014. FLIR Systems remains confident that it is well equipped to offer state-of-the-art technology to the U.S. soldiers.
We believe that FLIR Systems’ CDMQ model has supplemented the growth of its government business. Through this unique model, the company develops technology by investing in research and development, and then sells it to the government. Encouragingly, over the past six months, FLIR Systems’ shares recorded an average return of 18.9%, higher than that of the Zacks categorized Electronics-Military Systems industry average of 16.4%.
Further, the company’s earnings estimates moved north over the past month, reflecting bullish analyst sentiment. Analysts revised the Zacks Consensus Estimate upward from $1.78 to $1.85, for 2017 earnings over the past 30 days. This indicates that analysts are optimistic about the company’s prospects. Impressive traction of Lepton-based products, strategic buyouts and the thriving government business signal brighter days for this Zacks Rank #2 (Buy) company.
Teledyne Technologies has an average positive earnings surprise of 11.0% for the trailing four quarters, beating estimates all through.
Transdigm Group registered a positive average surprise of 6.6% over the last four quarters, beating estimates all through.
Hexcel also has a striking earnings history, having beaten estimates each time in the four trailing quarters, for an average positive surprise of 6.1%.
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FLIR Systems Wins Order from U.S. Department of Defense
FLIR Systems, Inc. recently announced that the company has clinched a delivery order worth $54.2 million from the U.S. Department of Defense. The five-year indefinite delivery, indefinite quantity (“IDIQ”) contract will extend throughout second-quarter 2018. This contract win highlights the company’s robust government and military business, which has proved to be a major profit churner in recent times.
The thermal imaging cameras and image sensor maker received the contract for 50 U.S. Army Chemical, Biological, Radiological, and Nuclear Dismounted Reconnaissance Sets, Kits, and Outfits (“CBRN DR-SKO”) systems. The CBRN DR-SKO system is a collection of mission-specific kits which offer “CBRN dismounted reconnaissance” capability deployed by the U.S. Military Joint Services, including Army, Navy, Air Force, Marines.
FLIR Systems has been a long-time partner of the CBRN DR-SKO, offering contracting services. The company has delivered over 100 systems to the U.S. Department of Defense since it was awarded the CBRN DR-SKO IDIQ in Dec 2014. FLIR Systems remains confident that it is well equipped to offer state-of-the-art technology to the U.S. soldiers.
We believe that FLIR Systems’ CDMQ model has supplemented the growth of its government business. Through this unique model, the company develops technology by investing in research and development, and then sells it to the government. Encouragingly, over the past six months, FLIR Systems’ shares recorded an average return of 18.9%, higher than that of the Zacks categorized Electronics-Military Systems industry average of 16.4%.
Further, the company’s earnings estimates moved north over the past month, reflecting bullish analyst sentiment. Analysts revised the Zacks Consensus Estimate upward from $1.78 to $1.85, for 2017 earnings over the past 30 days. This indicates that analysts are optimistic about the company’s prospects. Impressive traction of Lepton-based products, strategic buyouts and the thriving government business signal brighter days for this Zacks Rank #2 (Buy) company.
Key Picks
Other similarly-ranked stocks in the broader sector include Teledyne Technologies Incorporated (TDY - Free Report) , Transdigm Group Incorporated (TDG - Free Report) and Hexcel Corporation (HXL - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teledyne Technologies has an average positive earnings surprise of 11.0% for the trailing four quarters, beating estimates all through.
Transdigm Group registered a positive average surprise of 6.6% over the last four quarters, beating estimates all through.
Hexcel also has a striking earnings history, having beaten estimates each time in the four trailing quarters, for an average positive surprise of 6.1%.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>