On July 14, FLIR Systems, Inc. (FLIR) announced preliminary revenue and EPS results for the second quarter that will miss analysts expections. We recommended in our June 27 report that investors wait for a buying opportunity for FLIR. The fallout from this announcement, and formal release expected on July 22, may create a buying opportunity soon. We are looking for a buy-in price close to $23.
The company blames the missed revenue on continued weak demand in the government systems division. As we said in the earlier report, we are looking to see that FLIR's management can deal with the additional complexity in its business resulting from recent acquisitions. In the short run, this announcement confirms some of our fears; however, we would consider buying in if the price was low enough.
FLIR announced that it expects to post revenues of approximately $390 million and earnings per share of approximately $0.18 for the three months ended June 30. Results for the company's commercial systems division remained strong, while continued weak demand in the government systems division negatively impacted results for the quarter.
Management is evaluating its previously announced guidance for the full year 2011 and will provide updated guidance on its second quarter earnings call on July 22 at approximately 7:30 a.m.