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FLIR Systems (FLIR) to Report Q3 Earnings: What's in Store?

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FLIR Systems Inc. is set to report third-quarter 2020 financial results on Oct 30, before market open.

In the last reported quarter, the company delivered an earnings surprise of 28%. Moreover, it surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing on the other one, with an average beat of 4.61%.

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

Factors Under Consideration

FLIR Systems has been experiencing rising demand for its thermal EST camera applications and skin temperature screening software in the wake of the coronavirus outbreak. Meanwhile, the company's Defense Technologies segment has been experiencing steady demand for its unmanned systems amid the COVID-19 crisis. We expect these trends to have continued in the third quarter as well and boosted FLIR Systems’ top line.

However, its Defense Technologies segment has been encountering some administrative-related process delays in securing customer sign-offs and licenses for foreign sales. These delays might have essentially resulted in the shifting of some portion of revenue realization to late 2020, which in turn might have offset the aforementioned favorable factors.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $471.4 million, indicating slight growth of 0.04% from the year-ago quarter's reported figure.

In recent times, FLIR Systems’ tax rate increased as the result of the timing of expected amortization benefits in certain jurisdictions. This indicates that the company is incurring higher income tax expenses, which in turn might have weighed on its quarterly earnings.

The Zacks Consensus Estimate for FLIR Systems’ third-quarter earnings is pegged at 56 cents per share, implying a 5.1% 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 #4 (Sell), currently.

FLIR Systems, Inc. Price and EPS Surprise

Stocks to Consider

Here is a defense company you may want to consider as it has the right combination of elements to post an earnings beat in its upcoming release:

L3Harris Technologies Inc. (LHX - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank #3. The company will announce third-quarter 2020 earnings on Oct 30. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Defense Releases

Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.

Hexcel Corporation (HXL - Free Report) reported third-quarter 2020 loss of 29 cents per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line also declined from the prior-year quarter’s earnings per share of 90 cents.

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