What happened
Shares of FLIR Systems (FLIR) gained more than 14% on Monday after news broke that Amazon.com is using FLIR thermal cameras at its warehouses to screen for workers who might be infected with COVID-19. Screening is a huge potential market for FLIR's equipment, and Amazon's use is viewed as a strong endorsement of the company's tech.
So what
FLIR's cameras, which measure the amount of heat emitted by an object relative to its surroundings, are in use at Amazon warehouses in Los Angeles and Seattle, according to a Reuters report. The cameras, according to the report, are seen as superior to forehead thermometers because they require less time and less contact.
Image source: FLIR Systems.
Reuters said the cameras will soon replace thermometers at worker entrances to many Amazon-owned Whole Foods stores as well.
The COVID-19 pandemic has put a fresh emphasis on workplace safety, and it seems likely that on-the-job screening for fevers and other health indicators could become commonplace in the U.S. post-pandemic. FLIR seems well positioned to capture significant additional business thanks to that trend.
Now what
FLIR's cameras right now are primarily used in airports, port of entry locations, and public facilities. A move into warehouses and other private-employee workplaces could represent a huge boost to the company's addressable market, and over time generate real growth for the $1.8 billion-sales company.
That's going to take some time, and investors need to be careful not to get ahead of themselves, but given FLIR shares are down more than 25% year to date even after Monday's jump, the surge higher seems justified. FLIR could find itself with a lot of new business opportunities in a post-pandemic world.
