FLIR Systems, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component FLIR Systems, Inc. (NASDAQ:FLIR) will unveil its latest earnings on Thursday, October 25, 2012. FLIR Systems designs and manufactures thermal imaging systems used for a variety of applications in commercial, industrial and government markets across the globe.

FLIR Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 36 cents per share, a decline of 16.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 37 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 36 cents during the last month. Analysts are projecting profit to rise by 9.5% versus last year to $1.43.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 30 cents per share against a mean estimate of net income of 28 cents per share. In the first quarter, it missed forecasts by 2 cents.

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A Look Back: In the second quarter, profit rose 40.2% to $41.1 million (27 cents a share) from $29.3 million (18 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 13.2% to $338.3 million from $390 million.

Stock Price Performance: Between September 21, 2012 and October 19, 2012, the stock price dropped $1.66 (-7.9%), from $21.04 to $19.37. The stock price saw one of its best stretches over the last year between February 13, 2012 and February 21, 2012, when shares rose for six straight days, increasing 4.5% (+$1.10) over that span. It saw one of its worst periods between March 26, 2012 and April 10, 2012 when shares fell for 11 straight days, dropping 8.7% (-$2.26) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 4.5% in revenue from the year-earlier quarter to $354.5 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 6.7% in the fourth quarter of the last fiscal year and 6.7% in first quarter before falling again in the second quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 11.5% for the last four quarters.

Analyst Ratings: There are mostly holds on the stock with six of nine analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.76 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 5.99 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 3.4% to $1.2 billion while liabilities rose by 0.4% to $208.4 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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