FLIR Systems Inc. (FLIR) reported fourth-quarter 2014 earnings per share of 51 cents, which was significantly higher than 20 cents in the year-ago quarter. Adjusted earnings per share (including stock-based compensation) came in at 52 cents, which surpassed the Zacks Consensus Estimate of 49 cents.
Quarterly results benefited from the innovative growth strategies and new product launches made in the quarter. Encouragingly, the company declared an increase in its dividend rate and authorized a share repurchase program.
For full year 2014, FLIR Systems’ earnings per share came in at $1.39, well above the prior-year figure of $1.22.
Inside the Headlines
Total revenue came in at $434.4 million, an increase of 8.5% year over year. Revenues also surpassed the Zacks Consensus Estimate of $419 million. Growth across all the segments, excepting Maritime, fueled the quarterly revenues.
FLIR's backlog stood at about $547 million as of Dec 31, 2014, marking a decrease of 6% over the prior-year quarter. Operating income came in at $87.4 million compared with $37.8 million in the prior-year quarter. Pre-tax restructuring related charges negatively impacted the operating income in the quarter.
Liquidity & Cash Flow
The company's cash and cash equivalents stood at $531.4 million, as compared to $542.5 million at 2013-end. Long-term debt stood at $358.0 million, down from $372.5 million as on Dec 31, 2013.
Cash flow from operations stood at $62.8 million, compared to $105.2 million in the comparable year-ago quarter.
Dividend Raised
FLIR Systems raised its quarterly cash dividend rate by 10% sequentially to 11 cents from 10 cents per share. The new dividend is payable on Mar 6, to shareholders of record as of Feb 20, 2015.
Share Repurchases
Also, FLIR authorized a new share repurchase program to buy shares of up to 15 million over the next two years.
2015 Guidance
FLIR Systems provided its guidance for 2015. The company expects net earnings per share to be in the range of $1.60 – $1.70. Also, revenues are expected in the band of $1.55 billion – $1.6 billion.
Our Take
FLIR Systems performance has been improving and the company seems positive about the long-term benefits of its restructuring activities. Also, the company plans to boost its business by strategically launching and marketing its products. Moreover, the company’s move to reward shareholders’ value is commendable.
FLIR Systems currently has a Zacks Rank #3 (Hold). Some better-ranked stocks that can be considered at present include Pioneer Power Solutions, Inc. (PPSI), AO Smith Corp. (AOS) and Regal Beloit Corp. (RBC). All three carry a Zacks Rank #2 (Buy).
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