FLIR Systems (FLIR) Introduces Radar And Thermal Products

FLIR Systems, Inc. (NASDAQ:FLIR) recently launched radar and thermal products for the use of militaries and government agencies such as border patrol agents. These new products include two FLIR Ranger mid-range panel radars and the Recon V UltraLite thermal monocular.

The FLIR Ranger mid-range panel radars come with two variants, one with both land and air-based target detection capabilities and the other one with land detection capabilities. Notably, the R8SS-3D radars are capable of detecting both land and air targets like micro-drones. In fact, it can disclose the location and altitudes of small drones, apart from detecting vehicles and peoples on ground. The second variant, the R8SS radar, detects the land-based targets only. Both the radars work within an existing data network and have the capability to detect more than 500 threats as well as their locations at the same time.

Moreover, the company introduced the latest thermal monocular in the Recon series — the FLIR Recon V UltraLite. Notably, the Recon V UltraLite weighs lighter than previous versions and is designed to be used as a handheld device or can be mounted to a tripod or any other fixed place.

Existing Business Scenario

FLIR Systems’ core strength of providing reliable and effective imaging as well as threat-detection technologies is expected to drive growth. Additionally, increased adoption of thermal imaging in a broad spectrum of applications, ranging from military to personal hand-held cameras and Smartphones, continues to fuel growth in this market. The company also remains extremely committed toward introduction of innovative products to expand its customer base and strengthen foothold in new markets.

In the past six months, shares of the company have gained 14.9%, outperforming the industry’s increase of 7.3%.

Furthermore, this Zacks Rank #3 (Hold) company’s government and military business has been faring well over the past few quarters driven by its CDMQ model. Through this model the company develops technology by investing in research & development and then equips it with military standards for sale to the government. Also, FLIR Systems has been able to combat softness in cyclical spending associated with government markets using this model. Going ahead, the company expects CDMQ model to improve the prospects of its government business, thereby adding to its strength.

Despite these tailwinds, FLIR Systems’ gross margins are vulnerable to a host of factors, including product mix changes and manufacturing cost absorption. In addition, high manufacturing cost absorption is likely to restrict the company’s growth.

Stocks to Consider

Some better-ranked stocks from the same space are AeroVironment, Inc. (NASDAQ:AVAV) , L3 Technologies Inc. (NYSE:LLL) and CPI Aerostructures, Inc. (NYSE:CVU) . While AeroVironment sports a Zacks Rank #1 (Strong Buy), L3 Technologies and CPI Aerostructures carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AeroVironment surpassed estimates thrice in the trailing four quarters, with an average positive earnings surprise of 147.4%.

L3 Technologies exceeded estimates in the trailing four quarters, with an average positive earnings surprise of 7.4%.

CPI Aerostructures outpaced estimates thrice in the preceding four quarters, with an average earnings surprise of 20.1%.

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