Zacks Investment Research downgraded
FLIR Systems, Inc.
) to a Zacks Rank #5 (Strong Sell) on Mar 13, 2014.
Why the Downgrade?
FLIR Systems has witnessed sharp downward estimate revisions
after reporting disappointing fourth-quarter 2013 results.
Further, this thermal image provider reported negative earnings
surprises in the last 3 of the 4 quarters, with average earnings
miss of 3.9%. This apart, out of the 6 analysts covering the
stock, 5 have lowered their estimates for the current quarter and
5 out of 7 analysts have downgraded their estimates for the next
quarter in the last 60 days, while all 6 analysts have downgraded
their estimates for fiscal 2014.
On Feb 7, FLIR Systems reported fourth-quarter 2013 earnings
(excluding one-time items) of 35 cents, down 32.7% from 52 cents
in the year-ago-quarter. Quarterly earnings also missed the Zacks
Consensus Estimate by 10.3% or 4 cents.
The quarterly results were primarily impacted by the weakness
in order flow from the U.S. government-funded customers.
Though the company's revenues picked up 3.6% during the
quarter driven by its Commercial Systems segment, it was offset
by a decline in the Government Systems division. The Government
Systems division was primarily impacted by weak domestic demand
from the Department of Defense.
Nevertheless, the company announced changes in its management
structure and also restructured its reporting segments to enhance
company-wide communication, while creating a logical structure
that will further leverage its vertical integration and focus on
The Zacks Consensus Estimate for the first quarter of 2014
decreased as much as 25.7% to 26 cents per share and the estimate
for the second quarter declined 15.0% in the last 60 days. For
2014, the Zacks Consensus Estimate sank 10.3% to $1.48 per
Not all defense equipment providers are performing as poorly
as FLIR Systems. Some better-ranked companies in the industry
that are worth a look include
Alliant Techsystems Inc.
BAE Systems plc
), all of which sport a Zacks Rank # 1 (Strong Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis
ASTRONICS CORP (ATRO): Free Stock Analysis
BAE SYSTEMS-ADR (BAESY): Get Free Report
FLIR SYSTEMS (FLIR): Free Stock Analysis
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