FLIR Systems (NasdaqGS:FLIR) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

FLIR Systems, Inc. (NasdaqGS:FLIR) is scheduled to report Q3 earnings results on October 30, 2020.

The company is expected to report earnings of $0.54/share on revenue of $469.7 million. The consensus earnings per share (EPS) of $0.54/share is based on a poll of 9 analysts and represents a decline in eps of −7.9% over the same quarter last year, when the company reported earnings of $0.59/share.

The revenue forecast of $469.7 million based on a poll of 9 analysts implies a year-over-year (YoY) decline in revenue of −0.3%. Last year the company reported $471.2 million in revenue for the quarter.

Expected to report EPS contraction of −7.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $469.66 $471.25 −0.3%
EPS $0.54 $0.59 −7.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 1 quarter.

What are your expectations from FLIR Systems, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.51 $0.64 26.6% Beat
Q1, 2020 $0.42 $0.42 0% Met
Q4, 2019 $0.62 $0.55 −11.6% Missed
Q3, 2019 $0.58 $0.59 1.7% Beat
Q2, 2019 $0.54 $0.56 3.2% Beat
Q1, 2019 $0.48 $0.53 10.4% Beat
Q4, 2018 $0.59 $0.62 4.9% Beat
Q3, 2018 $0.56 $0.57 1.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −12.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $42.83 $37.48 −12.5% Decline
May 6, 2020 $41.42 $47.90 15.6% Increase
February 27, 2020 $54.09 $42.47 −21.5% Decline
October 31, 2019 $55.01 $53.30 −3.1% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.02, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.02 implies a 0.1% chance of earnings manipulation.

Fundamentals And Technical Analysis

FLIR Systems, Inc. is currently trading at $35.13/share, down −2.8% for the day. The company is trading at approximately 59.1% of its 52-week high of $59.44/share. The company’s stock price is down −6.3% since the last earnings report and down −3.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 44.80 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:FLIR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 32.81 and a forward P/E multiple of 16.29.

FLIR Systems, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.63. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $35.13
P/E Ratio 32.8x
P/E Ratio (Fwd) 16.3x
PEG Ratio −0.7
Total Debt / Total Capital 15.7%
Levered Free Cash Flow $306.8 million
EV / EBITDA 12.1x

Finbox

FLIR Systems, Inc. is a mid-cap stock with a market capitalization of $4.606 billion and a total enterprise value of $5.156 billion. The company operates in the Information Technology sector and the Electronic Equipment, Instruments & Components industry.

FLIR Systems, Inc. designs, develops, markets, and distributes thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions worldwide. The company operates in three segments: Industrial Business Unit, Government and Defense Business Unit, and Commercial Business Unit. The Industrial Business Unit segment offers thermal and visible-spectrum imaging camera cores and components for parties that create thermal, industrial, and other types of imaging systems; and products, such as thermal imaging cameras, gas detection cameras, firefighting cameras, process automation cameras, and environmental test and measurement devices. The Government and Defense Business Unit segment offers airborne, land, maritime, man-portable multi-spectrum imaging systems, radars, lasers, imaging components, integrated multi-sensor system platforms, CBRNE detectors, and nano-class UAS solutions, as well as services related to these systems. The Commercial Business Unit segment provides thermal and visible-spectrum security cameras, digital and networked video recorders, and related software and accessories; networked marine electronic systems that include multi-function helm displays, navigational instruments, autopilots, radars, sonar systems, thermal and visible imaging systems; communications equipment for boats, traffic cameras, sensors and associated traffic management software; and handheld thermal imagers. FLIR Systems, Inc. was founded in 1978 and is headquartered in Wilsonville, Oregon.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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