What happened

Shares of FLIR Systems (NASDAQ:FLIR) slumped on Tuesday after the manufacturer of sensing products reported its third-quarter results. FLIR missed analyst estimates for revenue, sending the stock down 12.8% by market close.

So what

FLIR reported third-quarter revenue of $434.9 million, down 6.4% year over year and about $11 million below the average analyst estimate. Organic revenue, which excludes revenue from acquisitions and divested businesses, increased by 3.1% year over year. FLIR has divested security businesses, which produced $43.4 million of revenue in the prior-year period.

A stock chart with a white declining arrow.

Image source: Getty Images.

The industrial segment generated revenue of $177.2 million, up 3.7% year over year. The government and defense segment generated revenue of $172.0 million, up 1.4% year over year, and the commercial segment generated revenue of $85.8 million, down 30.8% year over year.

Non-GAAP earnings per share came in at $0.57, up from $0.52 in the prior-year period and in line with analyst expectations. Non-GAAP gross margin rose 330 basis points year over year, to 52.3%.

Now what

FLIR expects full-year revenue between $1.78 billion and $1.80 billion, and full-year non-GAAP earnings per share between $2.17 and $2.22.

Shares of FLIR are now roughly flat year to date after Tuesday's tumble. They're down about 27% since peaking in early September.

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.