Shares of FLIR Systems (NASDAQ:FLIR) have tanked today, down by 18% as of 2 p.m. EST, after the company reported fourth-quarter earnings. The thermal imaging specialist missed expectations for both the top and bottom lines.
Revenue in the fourth quarter came in at $489 million, shy of the consensus estimate that called for $500.7 million in sales. That led to adjusted net income of $74.8 million, or $0.55 per share, compared to the $0.62 per share in adjusted profits that analysts were expecting. Adjusted operating margin took a hit due to "ongoing export compliance expenses" and increased research and development costs.
"FLIR finished 2019 with full year revenue of $1.9 billion and fourth quarter results that reflect a continuation of many of the trends we experienced in the third quarter," CEO Jim Cannon said in a statement. "Our Government and Defense and Industrial Business Units delivered performances highlighted by fourth quarter revenue growth and expanding full year backlog."
FLIR recently launched "Project Be Ready," which will reorganize the company into two business units, down from three currently. That initiative entailed discontinuing some products, and FLIR is looking into selling off its Raymarine non-thermal maritime electronics business. "This initiative aims to simplify our product portfolio and better align resources with higher growth opportunities while reducing costs," said Cannon.
The tech company issued guidance for 2020 that calls for revenue of $1.85 billion to $1.93 billion, which is expected to translate into adjusted earnings per share of $2.10 to $2.30 for the year.