FLIR Systems Earnings Cheat Sheet: Profits Dropped Year Over Year

Rising costs did not help S&P 500 (NYSE:SPY) component FLIR Systems, Inc. (NASDAQ:FLIR) in the first quarter as profit dropped from a year earlier. FLIR Systems, Inc. designs and manufactures thermal imaging systems used for a variety of applications in commercial, industrial and government markets across the globe.

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FLIR Systems Earnings Cheat Sheet for the First Quarter

Results: Net income for FLIR Systems, Inc. fell to $51.9 million (32 cents/share) vs. $55.9 million (35 cents/share) a year earlier. A decline of 7.2% from the year earlier quarter.

Revenue: Rose 30% to $373.5 million YoY.

Actual vs. Wall St. Expectations: FLIR fell short of the mean analyst estimate of 36 cents/share. Estimates ranged from 30 cents per share to 40 cents per share.

Quoting Management: “This quarter showcased the diversified nature of the business and the resiliency of our company. We released innovative products during the quarter that resulted in order volumes that outstripped our production forecasts. As anticipated, our Government Systems division was impacted by slowed U.S. procurement, but executed well and worked diligently to position the businesses for continued growth. Overall, we performed as we had expected during the quarter, had excellent cash flow, and believe the balance of the year will show improved results,” noted Earl Lewis, President and CEO of FLIR.

Key Stats: Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 15.9% from the year earlier while the figure increased 4.9% in third quarter of the last fiscal year, 6.8% four quarters ago and 3% five quarters earlier.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 5.2 percentage points to 52.4% from the year earlier quarter. Over that time, margins have contracted on average three percentage points per quarter on a year-over-year basis.

Over the last five quarters, revenue has increased 22.1% on average year over year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 39.4% from the year earlier quarter.

Competitors to Watch: L-3 Communications Hldgs., Inc. (NYSE:LLL), Implant Sciences Corp. (IMSC), General Dynamics Corp. (NYSE:GD), Raytheon Company (NYSE:RTN), Irvine Sensors Corporation (IRSN), Elbit Systems Ltd. (NASDAQ:ESLT), Herley Industries, Inc. (NASDAQ:HRLY), Cubic Corporation (NYSE:CUB), Anaren, Inc. (NASDAQ:ANEN), and Tel-Instrument Electronics Corp. (AMEX:TIK).

Today’s Performance: Shares of FLIR are trading at $34.40 as of April 29, 2011 at 11:11 AM ET, down from the previous close.


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