FLIR Systems Inc.
) released its first-quarter 2013 results. The company reported
earnings from continuing operations of 35 cents a share in the
quarter, a penny above the Zacks Consensus Estimate of 34 cents
and 12.9% higher than the prior-year earnings of 31 cents a
Overall efficiency of the company and effective cost control
measures helped FLIR to generate strong profits during the
Total revenue was $348.6 million in the first quarter, flat
year over year. Flat revenues were primarily attributable to slow
or delayed deliveries, primarily to the U.S. customers. In
addition, revenue growth was fully offset by the decline in the
Total backlog at the end of the quarter was approximately $505
million, down $15 million during the quarter versus the first
quarter of 2012. However, backlog increased 10% or $48 million
year over year.
division's revenues were $211.8 million in the quarter, up 5%
year over year. Within the Commercial Systems division, the
Thermal Vision and Measurement segment revenues increased 7% to
$167.4 million. Commercial Systems' Raymarine segment revenue was
$44.4 million, down 5% year over year.
The Commercial Systems division bookings in the first quarter
increased 6% year over year. Thermal Vision Measurement bookings
increased 11% year over year, while Raymarine bookings declined
8%. Thermal Vision Measurement's thermography line of business
reported a 7% decline in bookings from a year ago, primarily due
to weak European economy and dull building market in the U.S.
division's revenues came in at $136.8 million in the quarter,
down 6% year over year. The division was affected by difficult
market environment. Within the division, the Surveillance segment
revenue declined 4% to $110.2 million. Detection segment revenue
was $12.5 million, down 35% while Integrated Systems segment
revenue was $14 million, up 15%.
Backlog for the division at the end of the first quarter was
$334 million. The company's stock order flow in the U.S. was
partially offset by good international bookings. International
orders accounted for 60% of total bookings in the reported
Income and Expenses
Operating income in the first quarter was $69.1 million
compared to $68.3 million in the first quarter of 2012. Selling
and general expense was $78.2 million compared with $77.8 million
whereas research and development expense was $36.6 million, flat
year over year.
Cash and cash equivalents were $246.0 million at the end of
the quarter with long-term debt of $248.4 million and
shareholders' equity of $1.52 billion.
Cash flow from operations amounted to $61.9 million during the
quarter. The company repurchased 3.8 million shares for $26.22
per share during the quarter.
Concurrent with the earnings release, management reaffirmed
its fiscal 2013 guidance. FLIR Systems expects earnings per share
for 2013 to be in the range of $1.56 to $1.66 per share,
reflecting an increase of 8% to 14% from 2012. Total revenue is
expected to be in the range of $1.5 billion to $1.6 billion, an
increase of 7% to 14% from 2012.
FLIR currently has a Zacks Rank #2 (Buy), which is a good pick
at the moment. In addition, some other stocks that are worth
Raven Industries Inc
), all having Zacks Rank #2 (Buy).
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