FLIR Systems (FLIR) to Report Q2 Earnings: What's in Store?

FLIR Systems Inc. FLIR is set to report second-quarter 2020 financial results on Aug 6, before market open. In the last reported quarter, the company delivered break-even earnings.

However, in the trailing four quarters, the company came up with a negative earnings surprise of 1.94%, on average.

Let's take a closer look at the factors influencing FLIR Systems’ quarterly results.

Factors at Play

Frequent product innovation and bookings leading to solid organic revenue growth keep boosting the company’s top line. Keeping this trend alive, during the second quarter, FLIR System unveiled its EST thermal screening camera for fast and safe non-contact elevated skin temperature screening to improve safety and help curb the spread of COVID-19. This product launch is likely to have favorably contributed to the company’s second-quarter revenues.  

However, courtesy of the COVID-19 pandemic, the company has been experiencing some operational challenges like administration-related process delays in securing customer sign-offs and procuring the licensing for foreign sales, as government agencies and overseas customers transition to remote work policies. These delays have postponed bookings and revenue recognition to the end of 2020. Considering the fact that the impacts of the pandemic have only intensified in the second quarter, similar delays might have marred the company’s top-line performance in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $482 million, indicating a dip of 0.1% from the year-ago quarter's reported figure.

Due to stringent travel restrictions, shipments of products by FLIR Systems might have been hampered in the second quarter. This, in turn, is expected to have increased storage costs for the company, to store its finished yet undelivered products.

The Zacks Consensus Estimate for FLIR Systems’ second-quarter earnings is pegged at 50 cents per share, implying a 10.7% decline from the year-ago quarter’s reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for FLIR Systems this time around. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: FLIR Systems carries a Zacks Rank #2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLIR Systems, Inc. Price and EPS Surprise

FLIR Systems, Inc. Price and EPS Surprise

FLIR Systems, Inc. price-eps-surprise | FLIR Systems, Inc. Quote

Recent Defense Releases

Lockheed Martin Corp. LMT reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.

Hexcel Corporation HXL reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.

Teledyne Technologies TDY reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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