FLIR Systems Inc. FLIR is slated to report first quarter 2015 results on Apr 24.
Last quarter, the company posted a positive surprise of 6.12%. Also, FLIR Systems has an average positive surprise of 2.00% in the trailing four quarters.
Let's see how things are shaping up for this announcement.
Factors to Consider
FLIR Systems dedicated the last three quarters toward enhancing its portfolio base. In January, the company launched three new products – C2 Compact Professional Thermal Camera; a second generation FLIR ONE thermal camera for Android and iOS devices; and Raymarine Dragonfly 4DV and 5 Pro Fishfinder Systems. Moreover, in February, FLIR Systems collaborated with the leading specialty foundry leader, TowerJazz, to bring next-generation infrared (IR) technology to smartphone, security, industrial and other markets.
However, the strengthening of the U.S. dollar and political and economical uncertainty in some of the key operating regions continued to act as major headwinds for FLIR Systems. Throughout 2014, the company had experienced a strong currency headwind, which is expected to continue in 2015 as well. Taking this into account, management has reduced its profit expectation by 3 to 4 percentage points.
Earnings Whispers?
Our proven model does not conclusively show that FLIR Systems will beat earnings this season. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 33 cents. Hence, the difference is 0.00%.
Zacks Rank: FLIR Systems’ Zacks Rank #4 (Sell) when combined with 0.00% Earnings ESP makes an earnings beat unlikely. As it is, we caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Apple Inc. AAPL, Earnings ESP of +1.38% and Zacks Rank #2.
American Eagle Outfitters AEO, Earnings ESP of +18.18% and Zacks Rank #2.
Waters Corporation WAT, Earnings ESP of +0.98% and Zacks Rank #3.
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