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What's in the Cards for Roper (ROP) This Earnings Season?
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Roper Technologies (ROP - Free Report) is scheduled to report first-quarter 2018 results on Apr 20, before the opening bell.
The company has an impressive earnings surprise history, with an average positive surprise of 3.1% in the trailing four quarters. Last quarter, the company reported earnings of $2.70, delivering a beat of 3.5%. In the to-be-reported quarter, the company is anticipates strong revenues from its Industrial Technology segment, which constitutes a significant portion of total revenues.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Roper has successfully maintained a dominant position in most of the markets where it operates. In addition, the company’s optimum mix of highly engineered, niche-oriented products has enabled it to gain market share. Roper’s diversified revenue stream also allows it to counter headwinds, stemming from a cyclical business environment. We believe that the company’s innovative product pipeline is likely to be a major growth catalyst in the upcoming quarters.
Moreover, the company’s unique asset-light business model helps it to remain less dependent on large-scale production equipment. Also, it aids Roper to generate strong cash flow that is likely to boost forthcoming financial results. In addition, the company’s large project wins as well as strong order trends are expected to drive the top line in the upcoming quarters.
Notably, the Zacks Consensus Estimate for first-quarter revenues from the Industrial Technology segment currently remains high at $206 million compared with $183 million reported in the year-ago quarter. Revenues from Energy Systems & Controls segment are also anticipated to be strong, with the consensus mark projected at $136 million, reflecting growth of 8.8% year over year.
Furthermore, the company’s accretive acquisitions enable it to strengthen its business and expand its market share. Meanwhile, Roper’s major investments, including ConstructConnect and Deltek buyout, have reinforced its software and network businesses, thus driving the top line as well as margins. We believe that the successful integration of the acquisitions that strategically fit its overall business mix should prove conductive to its top-line growth in the upcoming quarters as well.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Roper in the to-be-reported 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. But that is not the case here as you will see below.
Zacks ESP: Roper has an Earnings ESP of -0.92% as the Most Accurate estimate is pegged at $2.47, lower than the Zacks Consensus Estimate of $2.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Roper carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Key Picks
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Graco Inc. (GGG - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #2.
Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Image: Bigstock
What's in the Cards for Roper (ROP) This Earnings Season?
Roper Technologies (ROP - Free Report) is scheduled to report first-quarter 2018 results on Apr 20, before the opening bell.
The company has an impressive earnings surprise history, with an average positive surprise of 3.1% in the trailing four quarters. Last quarter, the company reported earnings of $2.70, delivering a beat of 3.5%. In the to-be-reported quarter, the company is anticipates strong revenues from its Industrial Technology segment, which constitutes a significant portion of total revenues.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Roper has successfully maintained a dominant position in most of the markets where it operates. In addition, the company’s optimum mix of highly engineered, niche-oriented products has enabled it to gain market share. Roper’s diversified revenue stream also allows it to counter headwinds, stemming from a cyclical business environment. We believe that the company’s innovative product pipeline is likely to be a major growth catalyst in the upcoming quarters.
Moreover, the company’s unique asset-light business model helps it to remain less dependent on large-scale production equipment. Also, it aids Roper to generate strong cash flow that is likely to boost forthcoming financial results. In addition, the company’s large project wins as well as strong order trends are expected to drive the top line in the upcoming quarters.
Notably, the Zacks Consensus Estimate for first-quarter revenues from the Industrial Technology segment currently remains high at $206 million compared with $183 million reported in the year-ago quarter. Revenues from Energy Systems & Controls segment are also anticipated to be strong, with the consensus mark projected at $136 million, reflecting growth of 8.8% year over year.
Furthermore, the company’s accretive acquisitions enable it to strengthen its business and expand its market share. Meanwhile, Roper’s major investments, including ConstructConnect and Deltek buyout, have reinforced its software and network businesses, thus driving the top line as well as margins. We believe that the successful integration of the acquisitions that strategically fit its overall business mix should prove conductive to its top-line growth in the upcoming quarters as well.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for Roper in the to-be-reported 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. But that is not the case here as you will see below.
Zacks ESP: Roper has an Earnings ESP of -0.92% as the Most Accurate estimate is pegged at $2.47, lower than the Zacks Consensus Estimate of $2.49. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Roper Technologies, Inc. Price and EPS Surprise
Roper Technologies, Inc. Price and EPS Surprise | Roper Technologies, Inc. Quote
Zacks Rank: Roper carries a Zacks Rank #2, which increases the predictive power of ESP. However, the company’s negative ESP makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Key Picks
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
IDEX Corporation (IEX - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graco Inc. (GGG - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank #2.
Parker-Hannifin Corporation (PH - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3.
Can Hackers Put Money INTO Your Portfolio?
Earlier this year, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>