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Why Is Roper (ROP) Up 4.3% Since the Last Earnings Report?
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It has been about a month since the last earnings report for Roper Technologies, Inc. (ROP - Free Report) . Shares have added about 4.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Roper Beats Earnings Estimates in Q1, Misses Revenues
Roper Technologies reported first-quarter 2017 adjusted earnings per share of $2.11, beating the Zacks Consensus Estimate of $2.00. However, despite a 20.4% jump year over year, revenues of $1.086 billion missed the consensus mark of $1.094 billion.
Adjusted revenues grew 22% to $1.11 billion. Organic revenues were up 5% while orders increased 20.2% year over year to $1.114 billion in the quarter.
Roper maintained that acquisitions have helped its performance, especially the software and network businesses like ConstructConnect and Deltek.
Segment Revenue Details
Revenues from Medical & Scientific Imaging increased 4.8% year over year to $348.2 million.
Revenues from RF Technology went up 53.3% from the year-ago quarter to $429.6 million.
Revenues from Industrial Technology increased 7.1% year over year to $183.4 million.
Also, revenues from Energy Systems & Controls grew nearly 5.3% year over year to $125.1 million.
Margins
Adjusted gross margin increased 10 basis points (bps) to 62.2%. Adjusted EBITDA was $362 million, up 18% year over year.
Balance Sheet and Cash Flow
Roper Technologies ended the quarter with approximately $730.7 million in cash and equivalents, compared with $757.2 million as on Dec 31, 2016. Long-term debt was $5.440 billion, compared with $5.809 billion as of Dec 31, 2016.
In the first quarter, the company’s adjusted operating cash flow was $378 million while adjusted free cash flow was $360 million.
Guidance
For the second quarter of 2017, Roper Technologies expects adjusted earnings per share in a range of $2.16–$2.24.
For 2017, the company expects adjusted earnings per share in a range of $8.98–$9.28, compared with $8.82–$9.22 per share.Adjusted revenues are expected to be up in a band of 21% to 22% year over year. Organic revenues are expected to be up in a range of 4% to 5%. Operating cash flow is expected to be $1.150 billion, up 15% year over year.
For Industrial Technology,Medical & Scientific Imaging as well as RF Technologies, the company expects revenues to be up in mid single digits for the year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
At this time, Roper's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with a 'D'. Following the exact same course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Roper (ROP) Up 4.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for Roper Technologies, Inc. (ROP - Free Report) . Shares have added about 4.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Roper Beats Earnings Estimates in Q1, Misses Revenues
Roper Technologies reported first-quarter 2017 adjusted earnings per share of $2.11, beating the Zacks Consensus Estimate of $2.00. However, despite a 20.4% jump year over year, revenues of $1.086 billion missed the consensus mark of $1.094 billion.
Adjusted revenues grew 22% to $1.11 billion. Organic revenues were up 5% while orders increased 20.2% year over year to $1.114 billion in the quarter.
Roper maintained that acquisitions have helped its performance, especially the software and network businesses like ConstructConnect and Deltek.
Segment Revenue Details
Revenues from Medical & Scientific Imaging increased 4.8% year over year to $348.2 million.
Revenues from RF Technology went up 53.3% from the year-ago quarter to $429.6 million.
Revenues from Industrial Technology increased 7.1% year over year to $183.4 million.
Also, revenues from Energy Systems & Controls grew nearly 5.3% year over year to $125.1 million.
Margins
Adjusted gross margin increased 10 basis points (bps) to 62.2%. Adjusted EBITDA was $362 million, up 18% year over year.
Balance Sheet and Cash Flow
Roper Technologies ended the quarter with approximately $730.7 million in cash and equivalents, compared with $757.2 million as on Dec 31, 2016. Long-term debt was $5.440 billion, compared with $5.809 billion as of Dec 31, 2016.
In the first quarter, the company’s adjusted operating cash flow was $378 million while adjusted free cash flow was $360 million.
Guidance
For the second quarter of 2017, Roper Technologies expects adjusted earnings per share in a range of $2.16–$2.24.
For 2017, the company expects adjusted earnings per share in a range of $8.98–$9.28, compared with $8.82–$9.22 per share.Adjusted revenues are expected to be up in a band of 21% to 22% year over year. Organic revenues are expected to be up in a range of 4% to 5%. Operating cash flow is expected to be $1.150 billion, up 15% year over year.
For Industrial Technology,Medical & Scientific Imaging as well as RF Technologies, the company expects revenues to be up in mid single digits for the year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.
Roper Technologies, Inc. Price and Consensus
Roper Technologies, Inc. Price and Consensus | Roper Technologies, Inc. Quote
VGM Scores
At this time, Roper's stock has a nice Growth Score of 'B', though it is lagging a lot on the momentum front with a 'D'. Following the exact same course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregte VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.