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Roper Technologies (ROP) Q2 Earnings: What's in Store?
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Roper Technologies, Inc. (ROP - Free Report) is set to report second-quarter 2016 results on Jul 25, before the market opens. Last quarter, it posted a positive earnings surprise of 2.74%. It has an average four-quarter positive earnings surprise of 1.70%. Let’s see how things are shaping up for this announcement.
Factors at Play
Roper has a strategic business model which when combined with a healthy product mix and robust M&A activity is likely to drive growth in the long run. Also, the asset-light business model helps the company to generate strong cash flow quickly. In the past few months, the company saw an increase in net orders, which will likely benefit second-quarter results.
However, the company's Energy and Industrial segments are being negatively impacted by the ongoing weakness in the oil and gas sector. In addition, a leveraged balance sheet also poses some concerns.
For the second quarter of 2016, Roper Technologies expects adjusted earnings per share in the range of $1.56 - $1.61.
Earnings Whispers
Our proven model does not conclusively show that Roper Technologies is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Roper Technologies has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.61.
Zacks Rank: Roper Technologies carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Post Holdings Inc. (POST - Free Report) with an Earnings ESP of +12.77% and a Zacks Rank #1.
Louisiana-Pacific Corp. (LPX - Free Report) with an Earnings ESP of +4.0% and a Zacks Rank #1
Potlatch Corp. (PCH - Free Report) with an Earnings ESP of +42.86% and a Zacks Rank #2
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Roper Technologies (ROP) Q2 Earnings: What's in Store?
Roper Technologies, Inc. (ROP - Free Report) is set to report second-quarter 2016 results on Jul 25, before the market opens. Last quarter, it posted a positive earnings surprise of 2.74%. It has an average four-quarter positive earnings surprise of 1.70%. Let’s see how things are shaping up for this announcement.
Factors at Play
Roper has a strategic business model which when combined with a healthy product mix and robust M&A activity is likely to drive growth in the long run. Also, the asset-light business model helps the company to generate strong cash flow quickly. In the past few months, the company saw an increase in net orders, which will likely benefit second-quarter results.
However, the company's Energy and Industrial segments are being negatively impacted by the ongoing weakness in the oil and gas sector. In addition, a leveraged balance sheet also poses some concerns.
For the second quarter of 2016, Roper Technologies expects adjusted earnings per share in the range of $1.56 - $1.61.
Earnings Whispers
Our proven model does not conclusively show that Roper Technologies is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Roper Technologies has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.61.
Zacks Rank: Roper Technologies carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
ROPER INDS INC Price and EPS Surprise
ROPER INDS INC Price and EPS Surprise | ROPER INDS INC Quote
Stocks to Consider
Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Post Holdings Inc. (POST - Free Report) with an Earnings ESP of +12.77% and a Zacks Rank #1.
Louisiana-Pacific Corp. (LPX - Free Report) with an Earnings ESP of +4.0% and a Zacks Rank #1
Potlatch Corp. (PCH - Free Report) with an Earnings ESP of +42.86% and a Zacks Rank #2
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>