FLIR - Embedded Expectations Analysis - 2021 01 19
FLIR Systems, Inc. (FLIR) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.7x. At these levels, the market has somewhat bullish expectations, but management may have concerns about their product launches, long-term investment delays, and sales growthSpecifically, management may lack confidence in their ability to sustain orders from all four branches of the Armed Forces and deliver year-over-year growth in adjusted EPS due to the pandemic. In addition, they may be overstating the potential of the 380X product launch, the capabilities of the Neural Network Target Classifier (NNTC), and the proficiency of their unmanned systems. Furthermore, management may have concerns about the impact of long-term investment delays on the legacy defense business, including airborne ISRT, intelligent traffic systems, and legacy sensors. Finally, they may lack confidence in their ability to monitor emissions, sustain small nano drones and aerial systems growth, and maintain improvements in maritime product sales
FLIR Systems designs, develops, markets, and distributes solutions that detect people, objects and substances that may not be perceived by human senses. The company has three segments: Industrial, which develops hand-held, fixed mount, and desktop imaging and measurement products, and thermal and visible spectrum imaging camera cores and related components; Government and Defense, which develops and manufactures imaging and situational awareness solutions for a variety of military, law enforcement, public safety, and other government entities around the world; and Commercial, which provides security solutions for a multitude of applications, including enterprise and infrastructure security.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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