FLIR Systems (FLIR) Reports In-Line Earnings In Q1, Sales Up
Zacks Investment Research | Apr 25, 2017 10:30PM ET
FLIR Systems Inc. (NASDAQ:FLIR) broke its recent trend of missing estimates, as its first-quarter 2017 earnings per share of 36 cents came in line with the Zacks Consensus Estimate. The figure rose 12.5% over the prior-year quarter tally, as top-line growth and higher gross margin boosted profits.
GAAP net earnings for the quarter came in at $42.6 million, significantly higher than the year-ago quarter’s tally of $1.1 million.
Inside the Headlines
The company’s top line grew a remarkable 7.2% year over year to $406.8 million. However, revenues missed the Zacks Consensus Estimate of $408 million by a whisker. Recent acquisitions and several product launches in existing businesses bolstered the top line.
Phenomenal growth in the company’s OEM & Emerging Markets segment and strength in the Detection segment drove the overall top line, and more than offset the decline in sales experienced in the four remaining segments.
As for the segments, OEM & Emerging Markets revenues continued their striking growth trajectory, rising an impressive 77.2% over the prior-year quarter to $84.8 million, whileDetection revenues recorded growth of 8.7% year over year to $31.8 million. The revenues of OEM & Emerging Markets were partially driven by the addition of the Integrated Imaging Solutions line of business from the recent acquisition of Point Grey Research.
However, all other segments reported a decline in sales.Maritime segment revenues were down 6.1% year over year to $48.6 million.Surveillance segment revenues also contracted 4.4% year over year to $118.7 million.
In addition, Instruments revenues had another quarter of decline, decreasing 2% year over year to $77.9 million.
Revenues from the Security segment also had a disappointing performance this quarter, falling 4.2% over the prior-year quarter to $45.1 million.
FLIR Systems' backlog of firm orders for delivery within the next 12 months came in at $608 million, reflecting an increase of 3% from the tally at the end of year-ago quarter.
Adjusted operating income came in at $69.6 million compared with $62.2 million in the prior-year quarter. Sturdy top-line growth drove the rise in income.
Liquidity & Cash Flow
As of Mar 31, 2017, the company's cash and cash equivalents were $397.4 million compared with $361.3 million a year back. Long-term debt fell to $494.7 million compared with $501.9 million as at Dec 31, 2016.
Cash flow generated from operating activities in the quarter came in at $75.1 million, significantly higher than $45.9 million generated in the year-earlier quarter. The rise can be largely attributed to sustained improvements in productivity of working capital.
FLIR Systems, Inc. Price, Consensus and EPS Surprise
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