FLIR Systems Inc.’s (FLIR - Free Report) second-quarter 2018 adjusted earnings per share came in at 55 cents, surpassing the Zacks Consensus Estimate of 49 cents by 12.2%. The reported figure also surged 31% from the prior-year quarterly tally of 42 cents owing to solid top-line growth.
Excluding the one-time items, the company reported GAAP earnings of 51 cents compared to 37 cents in the year-ago quarter.
Inside the Headlines
FLIR Systems’ revenues grew 4.3% year over year to $452.7 million. The top line also exceeded the Zacks Consensus Estimate of $426.5 million by 6.1%. Sales growth in two of the three segments drove the overall top line.
Segment-wise, revenues at the Industrial segment increased 14.4% year over year to $188.4 million. The improvement was primarily driven by optical gas imaging, automotive and industrial unmanned aerial systems (UAS). At the Government and Defense segment, revenues totaled $161 million, up 10.5% on a year-over-year basis. The uptick can be attributed to increased deliveries of gimbaled systems, DR-SKO and UAS systems. However, the Commercial segment's revenues declined 16.5% to $103.3 million from the year-ago period.
Adjusted operating income came in at $102 million compared with $81 million in the prior-year quarter, reflecting a growth of 25.9%. A healthy top-line improvement led to the rise in operating income.
FLIR Systems, Inc. Price, Consensus and EPS Surprise
Liquidity & Cash Flow
As of Jun 31, 2018, the company's cash and cash equivalents were $507.9 million compared with $452.1 million as of Mar 31, 2018. Long-term debt was $421.3 million, marginally up from $421 million on Mar 31, 2018.
Cash flow generated from operating activities in the quarter came in at $110.2 million, up from $30.1 million in the prior-year period.
FLIR Systems raised its guidance for 2018. The company now projects adjusted earnings per share in the range of $2.17-$2.22 per share compared with its prior guidance of $2.11-$2.16 per share. In addition, it expects revenues in the band of $1.78-$1.8 billion compared with $1.76-$1.79 billion, projected earlier.
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
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