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Why Is Roper Technologies (ROP) Down 4.7% Since its 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 lost about 4.7% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is ROP due for a breakout? 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 catalysts.
Recent Earnings
Roper reported fourth-quarter 2017 adjusted earnings of $2.70 per share, which beat the Zacks Consensus Estimate of $2.61 and increased 23% on a year-over-year basis.
Adjusted revenues of $1.23 billion improved 21% year over year. Organic revenues were up 5%, while acquisitions contributed 15% of the top-line growth.
Net Orders grew 20.3% from the year-ago quarter to $1.30 billion.
Roper Technologies stated that its asset light business model and acquisitions continued to boost performance, especially ConstructConnect and Deltek.
Quarter Details
Medical & Scientific Imaging revenues increased 4.5% year over year to $367.1 million. RF Technology revenues surged 45.5% from the year-ago quarter to $491.4 million.
Industrial Technology revenues increased 16% year over year to almost $207 million. Also, revenues from Energy Systems & Controls grew 12.5% year over year to $160.4 million.
Adjusted gross margin increased 30 basis points (bps) to 62.6%.
Segment wise, Medical & Scientific Imaging, Industrial Technology and Energy Systems & Controls gross margins contracted 170 bps, 110 bps and 200 bps, respectively. However, RF Technology gross margin expanded 510 bps in the quarter.
Adjusted EBITDA was $441 million, up 21% year over year. Adjusted EBITDA margin expanded 20 bps to 35.7%.
Guidance
For first-quarter 2018, Roper Technologies expects adjusted earnings between $2.44 and $2.50 per share. For 2018, the company expects adjusted earnings between $10.88 and $11.20.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter. While looking back an additional 30 days, we can see even more upward momentum. There have been three moves up in the last two months. In the past month, the consensus estimate has shifted by 8.8% due to these changes.
VGM Scores
At this time, ROP has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable for growth and momentum investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise ROP has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Roper Technologies (ROP) Down 4.7% Since its Last Earnings Report?
It has been about a month since the last earnings report for Roper Technologies, Inc. (ROP - Free Report) . Shares have lost about 4.7% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is ROP due for a breakout? 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 catalysts.
Recent Earnings
Roper reported fourth-quarter 2017 adjusted earnings of $2.70 per share, which beat the Zacks Consensus Estimate of $2.61 and increased 23% on a year-over-year basis.
Adjusted revenues of $1.23 billion improved 21% year over year. Organic revenues were up 5%, while acquisitions contributed 15% of the top-line growth.
Net Orders grew 20.3% from the year-ago quarter to $1.30 billion.
Roper Technologies stated that its asset light business model and acquisitions continued to boost performance, especially ConstructConnect and Deltek.
Quarter Details
Medical & Scientific Imaging revenues increased 4.5% year over year to $367.1 million. RF Technology revenues surged 45.5% from the year-ago quarter to $491.4 million.
Industrial Technology revenues increased 16% year over year to almost $207 million. Also, revenues from Energy Systems & Controls grew 12.5% year over year to $160.4 million.
Adjusted gross margin increased 30 basis points (bps) to 62.6%.
Segment wise, Medical & Scientific Imaging, Industrial Technology and Energy Systems & Controls gross margins contracted 170 bps, 110 bps and 200 bps, respectively. However, RF Technology gross margin expanded 510 bps in the quarter.
Adjusted EBITDA was $441 million, up 21% year over year. Adjusted EBITDA margin expanded 20 bps to 35.7%.
Guidance
For first-quarter 2018, Roper Technologies expects adjusted earnings between $2.44 and $2.50 per share. For 2018, the company expects adjusted earnings between $10.88 and $11.20.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter. While looking back an additional 30 days, we can see even more upward momentum. There have been three moves up in the last two months. In the past month, the consensus estimate has shifted by 8.8% due to these changes.
VGM Scores
At this time, ROP has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is suitable for growth and momentum investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. It comes with little surprise ROP has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.