Stock News Recap: FLIR Systems, Inc. (NASDAQ: FLIR)

On 21 Nov 2019, FLIR Systems, Inc. (NASDAQ: FLIR) spotted trading -4.39% off 52-week high price. On the other end, the stock has been noted 31.05% away from the low price over the last 52-weeks. The stock changed -0.30% to recent value of $53.1. The stock transacted 604716 shares during most recent day however it has an average volume of 671.72K shares. The company has 134.74M of outstanding shares and 133.19M shares were floated in the market.

FLIR Systems, Inc. (FLIR) recently reported financial results for the third quarter ended September 30, 2019.

Third Quarter 2019

Third quarter 2019 revenue was $471.2M, 8.4% higher than third quarter 2018 revenue of $434.9M. Organic revenue growth was 2.5%, which excludes revenue from acquisitions within the last twelve months. Third quarter total bookings increased 13.0% from the third quarter of 2018 to $495.3M, driven primarily by a contract with a prime defense manufacturer in the Industrial Business Unit, together with numerous smart city and industrial wins in the Commercial and Industrial Business Units. At the end of the third quarter total 12-month current backlog stood at $668M, a raise of 13.0% contrast to the balance at the end of the third quarter 2018. Similarly, total backlog at the end of the third quarter increased 16.7% to $810M over the same period.

GAAP Earnings Results

GAAP gross profit in the third quarter 2019 was $229.6M, contrast to $222.1M in the third quarter 2018. GAAP gross margin reduced 234 basis points to 48.7% in the third quarter 2019, contrast with 51.1% in the previous year. GAAP operating income in the third quarter reduced 16.0% to $74.4M, contrast to $88.6M in the previous year, representing a 458 basis point decline in operating margin. GAAP gross margin and GAAP operating margin were both negatively influenced by the acquisitions for our unmanned systems and solutions business as it ramps to support franchise program wins, the buildout of our Global Trade Compliance resources to sustain compliance, and the increase in amortization of intangible assets associated with the aforementioned acquisitions.

Third quarter 2019 GAAP net earnings were $62.0M, or $0.46 per diluted share, contrast with GAAP net earnings of $73.2M, or $0.52 per diluted share in the third quarter last year. GAAP net earnings in the quarter were also negatively influenced by higher operating expenses and the increase in amortization of intangible assets associated with the before reported acquisitions.

Cash provided by operations was $276.8M for the nine months ended September 30, 2019, contrast to $275.8M realized in the first nine months of 2018. About 2.5M shares were repurchased in the first nine months of 2019.

Non-GAAP Earnings Results

Adjusted gross profit was $240.4M in the third quarter 2019, increasing 5.7% over adjusted gross profit of $227.4M in the third quarter 2018. Adjusted gross margin reduced 129 basis points to 51.0%, contrast with 52.3% in the third quarter 2018. Adjusted operating income reduced 4.2% to $101.6M in the third quarter 2019, contrast to adjusted operating income of $106.0M in the third quarter 2018. This was primarily driven by operating expenses associated with the recent acquisitions. Adjusted operating margin reduced 282 basis points to 21.6%, contrast with 24.4% in the third quarter 2018.

Adjusted net earnings in the third quarter 2019 were $80.2M, or $0.59 per diluted share, which was 3.0% higher than adjusted earnings per diluted share of $0.57 in the third quarter 2018. The adjusted effective tax rate for the third quarter was 16.0%, down from 20.5% in the second quarter, driven mainly by a higher benefit earned from foreign derived intangible income and research expenditures, combined with a lower US tax burden on income earned by foreign subsidiaries. For the full year, the Company now expects our effective tax rate to be 19.0%.

Its earnings per share (EPS) expected to touch remained 39.50% for this year while earning per share for the next 5-years is expected to reach at 21.90%. FLIR has a gross margin of 50.10% and an operating margin of 16.50% while its profit margin remained 14.50% for the last 12 months.   According to the most recent quarter its current ratio was 2.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of -0.86% from the mean of 20 days, 0.04% from mean of 50 days SMA and performed 3.80% from mean of 200 days price. Company’s performance for the week was -0.19%, -0.38% for month and YTD performance remained 21.96%.

 

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