Flir Systems Shares Jump on First-Quarter Revenue Beat

FLIR Systems shares climbed as sales of its thermal cameras beat Wall Street's expectations.
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FLIR Systems  (FLIR) - Get Report shares on Wednesday climbed after the imaging and surveillance systems company beat Wall Street's first-quarter revenue expectations.

Sales of the Wilsonville, Ore., company's thermal cameras surged in response to companies' concerns about the coronavirus pandemic.

FLIR also withdrew its 2020 financial guidance. 

Shares of the company at last check were 9.2% higher at $45.22.

FLIR Systems earned $15.4 million, or 11 cents a share, in the quarter, compared with $61.7 million, or 45 cents, in the year-earlier period. Shares outstanding fell 1.6% to 134.9 million.

The latest adjusted earnings came to 42 cents a share, matching the Zacks Investment Research consensus.

Revenue totaled $450.9 million, up 1.4% from a year earlier and surpassing the Zacks estimate of $438.6 million.

"As the covid-19 pandemic has created unprecedented challenges around the globe, we are extremely proud that FLIR products and technology are playing a critical role in helping combat the spread of this virus," President and Chief Executive Jim Cannon said in a statement. 

"As a result, we continue to experience increased demand for our thermal cameras for use in elevated skin temperature - or EST - screening."

Although these thermal cameras cannot detect or diagnose any type of medical condition, Cannon said, they "serve as an effective tool to identify elevated skin temperatures through accurate, non-contact temperature monitoring."

"While it is still too early to estimate longer-term demand for our EST screening technology, sales of these products have offset other headwinds to our business resulting from the pandemic," he said.

The pandemic has disrupted FLIR's supply chain and "significantly reduced sales in our commercially centric businesses including maritime and security. Although our first quarter bookings faced a difficult year-over-year comparison, we were pleased to end the quarter with a record total backlog of $859.3 million."

While the situation remains highly fluid, FLIR said, it ended the first quarter "with ample liquidity and financial flexibility". 

As of March 31, the company said it had $309 million in cash and cash equivalents and about $260 million in borrowing capacity within its credit facility based on current profitability levels and leverage covenants.

Last month, FLIR Systems saw its shares climb on news that Amazon  (AMZN) - Get Report had begun to use thermal cameras at its warehouses to accelerate screening for employees who may have contracted coronavirus.