Roper Technologies, Inc. (ROP - Free Report) has reported better-than-expected second-quarter 2021 results, with earnings surpassing estimates by 2.7% and sales beating the same by 1.6%.
The company’s adjusted earnings in the second quarter were $3.76 per share, surpassing the Zacks Consensus Estimate of $3.66. On a year-over-year basis, earnings jumped 28% from $2.94.
Revenue Details
In the reported quarter, Roper’s net revenues amounted to $1,587.6 million, up 21.7% year over year. Adjusted revenues increased 22% year over year to $1,588 million. Organic revenues in the quarter increased 7%, while acquisitions/divestitures and foreign currency translation had positive impacts of 12% and 2%, respectively.
Roper’s top line surpassed the Zacks Consensus Estimate of $1,563 million.
The company reports revenues under four segments. A brief discussion of the quarterly results is provided below:
Application Software’s revenues totaled $591.6 million, representing 37.3% of the quarter’s top line. On a year-over-year basis, the segment’s revenues grew 48.5%.
Network Software & Systems generated revenues of $458.7 million, accounting for 28.9% of second-quarter revenues. The top line was up 8.7% year over year.
Measurement & Analytical Solutions generated revenues of $397 million, accounting for 25% of the quarter’s revenues. Sales grew 9.1% year over year.
Process Technologies generated revenues of $140.3 million, accounting for 8.8% of the quarter’s revenues. Sales were up 16.2% year over year.
Margin Profile
In the reported quarter, Roper’s cost of sales increased 20% year over year to $553.5 million. Cost of sales was 34.9% of the quarter’s net sales. Gross profit (adjusted) in the quarter grew 22.6% year over year to $1,034.1 million, while adjusted gross margin increased 40 basis points (bps) to 65.1%.
Selling, general and administrative expenses increased 20.8% year over year to $616.1 million. It represented 38.8% of net sales in the reported quarter. Adjusted earnings before interest, tax, depreciation and amortization were $579 million, reflecting year-over-year growth of 26%. Margin increased 110 bps to 36.4%. Interest expenses jumped 27.7% year over year to $60 million.
Balance Sheet & Cash Flow
Exiting the second quarter, Roper had cash and cash equivalents of $337.8 million, up 2.1% from $331 million recorded in the last reported quarter. Long-term debt fell 5.3% sequentially to $8,199.5 million.
During the quarter, the company’s payments under the revolving line of credit were $375 million. Free cash flow in the quarter increased 30% to $409 million.
The company generated net cash of $985.1 million from operating activities in the first six months of 2021, reflecting an increase of 21.2% from the year-ago period. Capital expenditure totaled $17.2 million compared with $15.5 million a year ago.
In the first half of 2021, the company rewarded shareholders with a dividend payout of $117.8 million. The amount represents growth from $106.6 million distributed in the year-ago period.
Outlook
For 2021, Roper remains optimistic about the improving end-market conditions, which were affected by the coronavirus pandemic.
For 2021, the company currently anticipates adjusted earnings of $15.00-$15.20 per share, higher than $14.75-$15.00 guided earlier.
For the third quarter, the adjusted earnings is projected to be $3.80-$3.84 per share.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Griffon Corporation (GFF - Free Report) , ITT Inc. (ITT - Free Report) and 3M Company (MMM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Griffon delivered an earnings surprise of 122.71%, on average, in the trailing four quarters.
ITT delivered an earnings surprise of 26.36%, on average, in the trailing four quarters.
3M delivered an earnings surprise of 9.85%, on average, in the trailing four quarters.
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Roper Technologies, Inc. (ROP - Free Report) has reported better-than-expected second-quarter 2021 results, with earnings surpassing estimates by 2.7% and sales beating the same by 1.6%.
The company’s adjusted earnings in the second quarter were $3.76 per share, surpassing the Zacks Consensus Estimate of $3.66. On a year-over-year basis, earnings jumped 28% from $2.94.
Revenue Details
In the reported quarter, Roper’s net revenues amounted to $1,587.6 million, up 21.7% year over year. Adjusted revenues increased 22% year over year to $1,588 million. Organic revenues in the quarter increased 7%, while acquisitions/divestitures and foreign currency translation had positive impacts of 12% and 2%, respectively.
Roper’s top line surpassed the Zacks Consensus Estimate of $1,563 million.
The company reports revenues under four segments. A brief discussion of the quarterly results is provided below:
Application Software’s revenues totaled $591.6 million, representing 37.3% of the quarter’s top line. On a year-over-year basis, the segment’s revenues grew 48.5%.
Network Software & Systems generated revenues of $458.7 million, accounting for 28.9% of second-quarter revenues. The top line was up 8.7% year over year.
Measurement & Analytical Solutions generated revenues of $397 million, accounting for 25% of the quarter’s revenues. Sales grew 9.1% year over year.
Process Technologies generated revenues of $140.3 million, accounting for 8.8% of the quarter’s revenues. Sales were up 16.2% year over year.
Margin Profile
In the reported quarter, Roper’s cost of sales increased 20% year over year to $553.5 million. Cost of sales was 34.9% of the quarter’s net sales. Gross profit (adjusted) in the quarter grew 22.6% year over year to $1,034.1 million, while adjusted gross margin increased 40 basis points (bps) to 65.1%.
Selling, general and administrative expenses increased 20.8% year over year to $616.1 million. It represented 38.8% of net sales in the reported quarter. Adjusted earnings before interest, tax, depreciation and amortization were $579 million, reflecting year-over-year growth of 26%. Margin increased 110 bps to 36.4%. Interest expenses jumped 27.7% year over year to $60 million.
Balance Sheet & Cash Flow
Exiting the second quarter, Roper had cash and cash equivalents of $337.8 million, up 2.1% from $331 million recorded in the last reported quarter. Long-term debt fell 5.3% sequentially to $8,199.5 million.
During the quarter, the company’s payments under the revolving line of credit were $375 million. Free cash flow in the quarter increased 30% to $409 million.
The company generated net cash of $985.1 million from operating activities in the first six months of 2021, reflecting an increase of 21.2% from the year-ago period. Capital expenditure totaled $17.2 million compared with $15.5 million a year ago.
In the first half of 2021, the company rewarded shareholders with a dividend payout of $117.8 million. The amount represents growth from $106.6 million distributed in the year-ago period.
Outlook
For 2021, Roper remains optimistic about the improving end-market conditions, which were affected by the coronavirus pandemic.
For 2021, the company currently anticipates adjusted earnings of $15.00-$15.20 per share, higher than $14.75-$15.00 guided earlier.
For the third quarter, the adjusted earnings is projected to be $3.80-$3.84 per share.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Griffon Corporation (GFF - Free Report) , ITT Inc. (ITT - Free Report) and 3M Company (MMM - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Griffon delivered an earnings surprise of 122.71%, on average, in the trailing four quarters.
ITT delivered an earnings surprise of 26.36%, on average, in the trailing four quarters.
3M delivered an earnings surprise of 9.85%, on average, in the trailing four quarters.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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