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Image surveillance company lands $50 million contract with US Coast Guard; Shares rise

U.S. Coast Guard rescue swimmers at work.
Source: USCG
U.S. Coast Guard rescue swimmers at work.

Shares of FLIR Systems rose Wednesday after the company announced a $50 million contract to provide electronics systems to the U.S. Coast Guard.

The Wilsonville, Oregon-based company will configure systems on more than 2,000 U.S. Coast Guard vessels, according to a Wednesday press release from FLIR. The U.S. Coast Guard did not immediately respond to a request for comment from CNBC.

Shares gained 8 percent on the day, bouncing back from a 6 percent decline on Tuesday after FLIR reported earnings that missed analysts' expectations.

The image surveillance company announced adjusted fourth-quarter earnings of 48 cents per share, missing Thomson Reuters estimates of 54 cents.

Looking at the full year ahead, though, FLIR released new guidance of earnings that should fall within a range of $1.81 to $1.91, topping Reuters estimates of $1.79. FLIR has also approved a quarterly cash dividend of 15 cents per share, which is 25 percent more than its previous dividend of 12 cents.

FLIR 1-year performance

Source: FactSet

On Tuesday the Oregon company also said that chief executive Andrew Teich plans to retire when the company finds a successor. Teich has been with FLIR since 1999, and he became CEO in 2013.

With Wednesday's gain, FLIR shares are up 2 percent for 2017, versus the S&P 500's more than 4.5 percent gain.