FLIR Systems Earnings: Here’s Why Investors are Not Excited Now

FLIR Systems, Inc. (NASDAQ:FLIR) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.68%.

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FLIR Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.9% to $0.35 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Rose 0.04% to $348.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FLIR Systems, Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company met the mean analyst estimate of $0.35. It missed the average revenue estimate of $361.32 million.

Quoting Management: “First quarter results were consistent with our expectations for how the year would begin,” noted Earl Lewis, President and CEO of FLIR. “Despite the difficult funding and macro environment our customers are experiencing, both of our divisions have meaningfully higher backlog than they did a year ago and our focus on organizational efficiency and cost control resulted in increased margins and net earnings growth. In addition, we continue to generate operating cash at a rate that significantly exceeds net income, which will allow us to generate strong returns for our shareholders.”

Key Stats (on next page)…

Revenue decreased 9.78% from $386.39 million in the previous quarter. EPS decreased 32.69% from $0.52 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.34 to a profit $0.36. For the current year, the average estimate has moved up from a profit of $1.56 to a profit of $1.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)