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Roper Industries Inc. (ROP - Snapshot Report) is set to report fourth quarter 2013 results on Jan 27. Last quarter, it posted a 2.1% negative surprise. The company has posted an average positive earnings surprise of 1.0% over the past four quarters.  Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Roper reported mixed third quarter results. A strong backlog coupled with robust organic growth will drive earnings. Moreover, accretive acquisitions will help the company to widen its product portfolio and extend its foothold in various spheres, thus providing a significant competitive edge over its peers.

However, macroeconomic slowdown, integration issues on account of the acquisitions and stiff competition from the likes of Danaher Corp, Dover Corp and Ingersoll-Rand plc remain concerns.

Earnings Whispers?

Our proven model does not conclusively show that Roper is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: The Expected Surprise Prediction stands at 0.0%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.60.

Zacks Rank #4 (Sell): We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

Melco Crown Entertainment Limited (MPEL - Snapshot Report), Earnings ESP of +5.0% and a Zacks Rank #1 (Strong Buy)

Western Digital (WDC - Analyst Report), Earnings ESP of +0.96% and a Zacks Rank #1 (Strong Buy)

Multimedia Games Holding Company, Inc. (MGAM - Snapshot Report), Earnings ESP of +10.35% and a Zacks Rank #2 (Buy)

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