Goldman Sachs Comments On FLIR Systems Following Recent Earnings Release

FLIR Systems

reported 1Q EPS of $0.32 below GS and consensus of $0.38 and $0.36. However, the mid-point of revenue guidance was raised by 3% and EPS guidance was narrowed to $1.70-1.75 from $1.65-1.75, implying simply a more back-end loaded year vs. any major fundamental disappointment. Goldman Sachs remains Neutral rated on FLIR as 1Q manifests itself as yet another quarter of tug-of-war between commercial and government end markets. Shares opened down 3% and closed slightly up as management provided bullish updates on opportunities at Commercial, suggesting investors are willing to pay a higher multiple for FLIR as commercial eventually grows into a larger percentage of earnings. While the Commercial side does appear to be gaining momentum, Goldman still sees slower-than-average EPS growth vs the remainder of its A&D coverage until that rebalancing of end markets occurs. Goldman Sachs has a $32 PT and Neutral rating on FLIR FLIR is trading lower at $35.17