Factors Likely To Shape FLIR Systems' (FLIR) Q2 Earnings
Zacks Investment Research | Jul 18, 2019 10:16PM ET
FLIR Systems Inc. (NASDAQ:FLIR) is set to report second-quarter 2019 financial results on Jul 24, before market open. In the trailing four quarters, the company came up with average positive earnings surprise of 6.50%.
Let's take a closer look at the factors influencing FLIR Systems’ quarterly results.
Factors to Consider
Frequent product innovations and bookings leading to solid organic revenue growth usually provide a boost to the company’s top line. Keeping this trend alive, during the second quarter, FLIR System unveiled its handheld thermal imaging camera (TIC), which is the company’s most affordable TIC for first responder officers and fire investigators. The company also introduced TrafiData intelligent thermal traffic sensor solution for improved data collection capabilities to offer transportation management key insights for smarter, safer cities.
Moreover, the company has been witnessing robust bookings for the past couple of quarters. Anticipating a similar trend in the second quarter, we may expect solid bookings to boost the company’s top line. In line with this, the Zacks Consensus Estimate for second-quarter revenues is pegged at $480.2 million, indicating a 6.1% improvement from year-earlier reported number.
In a bid to drive its core and non-core businesses, FLIR Systems consistently banks on acquisitions and strategic investments. However, in the soon-to-be-reported quarter, the company made no notable earnings accretive investments. Moreover, the company has been experiencing declines in its outdoor and tactical systems (OTS) business due to continued restructuring impacts, which in turn might hurt the bottom line. Negative foreign exchange impacts along with U.S. import tariff effects have also been impacting the company’s earnings.
While positive revenue projections can be expected to boost FLIR Systems’ earnings, the aforementioned factors are likely to act as growth inhibitors. Thus, the consensus mark for the company’s second-quarter earnings stands at 55 cents, implying no year-over-year change.
FLIR Systems, Inc. Price and EPS Surprise
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