Sensing technology manufacturer posts higher revenues, margins, profits and earnings
FLIR Systems, Inc. has released its 2019 first quarter results marking year-over-year gains in revenue, gross profit, gross margins, operating income and earnings.
Revenues for the quarter ended March 31, 2019 were reported as US$444.7m, representing a gain of 1.2% over the first quarter of 2018. Boosted by a drop in the cost of goods sold, from $221.7m in the first quarter of 2018 to $211.0m for Q1 2019, the revenue gain allowed the company to achieve Q1 gross profits of $233.7m, compared to $217.9m for the previous first quarter.
Gross margins increased by a full 300 basis points to 52.5% for the first quarter of 2019, while operating income grew by 46.1% to $81.1m against income of $55.5 million reported for the prior year. Cash provided by operations was reported as $55.5m, representing a 28.6% increase over the $43.2m reported for Q1 2018, while earnings per share grew by 10% to $0.53.
“Improvements in our product mix and continued commitment to the FLIR Method productivity initiatives drove meaningful margin expansion year over year, resulting in double-digit earnings growth,” said FLIR president and CEO, Jim Cannon. “With another quarter of robust bookings – combined with significant opportunities across the portfolio, including our two recent unmanned acquisitions – FLIR is well-positioned for strong performance through 2019 and beyond.”
FLIR’s commercial business unit posted revenues of $92.0m for the quarter, down 16.1% from the prior year with impacts from negative foreign exchange effects and continued restructuring. This was offset by gains in the company’s industrial business and government and defense business units.
The company noted that based on first quarter results it continues to anticipate revenues for FY 2019 to be in the range of $1.92b to $1.95b, representing YOY growth in the range of 8% to 10%, with adjusted operating income margins in the range of 22% to 23%.