FLIR Beats Qtly Est., Lags FY11 (FLIR) (LLL) (LMT)

Zacks

FLIR Systems Inc. (FLIR) released its fourth-quarter 2011 earnings results before the market opened today, reporting earnings from continuing operations of 49 cents, above the Zacks Consensus Estimate of 45 cents and prior-year earnings of 43 cents.

For 2011, earnings per share from continuing operations were $1.38, below the Zacks Consensus Estimate of $1.53 and prior-year earnings of $1.54. Full-year earnings was affected by net after tax impact of the severance cost, excluding which earnings per share came in at $1.58.

Total Revenue

Total revenue was $405.2 million, a decrease of 7% year over year. Total backlog at the end of December 31, 2011 was about $456 million, down $90 million during the quarter.

For 2011, total revenue was $1.54 billion, an increase of 11% year over year.

Divisional Revenue

Commercial Systems division was $224.8 million in the quarter, up 3% year over year. Within the Commercial Systems division, the Thermal Vision and Measurement segment revenue increased by 7% to $189.5 million. Commercial Systems' Raymarine segment revenue was $35.3 million, down 12% year over year.

Government Systems division was $180.4 million in the quarter, down 18% year over year. Within the division, the Surveillance segment revenue declined 19% to $146.4 million. Detection segment revenue was $23.6 million while Integrated Systems segment revenue was $10.4 million.

Income and Expenses

Operating earnings, for the quarter, was $76.8 million compared with $70.4 million in the prior-year period. Selling and general expense was $80.2 million compared with $97.5 million whereas research and development expense was $34.9 million compared with $35.0 million.

Balance Sheet

Cash and Cash equivalents were $440.8 million at the end of the quarter with shareholders equity of $1.58 billion.

Outlook

FLIR Systems expects earnings per share for 2012 to be in the range of $1.60 to $1.70, up 16% to 23% year over year. Total revenue is expected to be in the range of $1.55 billion to $1.65 billion, up 0% to 7% year over year.

FLIR Systems Inc. is a leader in design, manufacture and marketing of thermal imaging systems. Its products are used in a wide variety of applications in commercial, industrial and government markets, internationally as well as domestically. It offers a wide variety of system configurations to suit specific customer requirements. The company’s business is organized into three divisions: Government Systems, Commercial Vision Systems and Thermography Products. Major competitors of FLIR Systems are L-3 Communications Holdings Inc. (LLL) and Lockheed Martin Corporation (LMT).

We continue to maintain a Neutral rating on FLIR System for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

FLIR SYSTEMS (FLIR): Free Stock Analysis Report

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