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Will Roper (ROP) Pull Off a Surprise this Earnings Season?
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Roper Technologies Inc. (ROP - Free Report) ) is set to report fourth-quarter 2016 results on Feb 9, before the market opens. Last quarter, it posted a positive earnings surprise of 1.85%. However, the company delivered negative earnings surprises in two out of the last four quarters, with an average negative earnings surprise of 0.17%.
Moreover, we note that Roper has underperformed the Zacks categorized Machinery-Gen Industrial industry in the last one year. The company’s shares have increased 19.06% compared with the industry’s gain of 34.91% during the period.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Roper’s asset-light business model and robust M&A activity will likely push its business. The acquisitions of Deltek and ConstructConnect and winning New York City’s MTA project are significant positives. The company's strong dividend policy is also an added positive.
However, the company’s business has been affected because of the weakness in the oil and gas sector. Sluggish global macroeconomic conditions also remain concerns. Stiff competition from the likes of Applied Industrial Technologies, Inc. (AIT - Free Report) , Barnes Group Inc. (B - Free Report) and Chart Industries Inc. (GTLS - Free Report) , is an added concern
For the fourth quarter of 2016, Roper Technologies expects adjusted earnings per share in a range of $1.77 - $1.89.
Our proven model does not conclusively show that Roper Technologies is likely to beat earnings estimates 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. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Roper Technologies is 0.00%. This is because the Most Accurate estimate and Zacks Consensus Estimate are both pegged at $1.82. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Roper Technologies has a Zacks Rank #2 (Buy). Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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Will Roper (ROP) Pull Off a Surprise this Earnings Season?
Roper Technologies Inc. (ROP - Free Report) ) is set to report fourth-quarter 2016 results on Feb 9, before the market opens. Last quarter, it posted a positive earnings surprise of 1.85%. However, the company delivered negative earnings surprises in two out of the last four quarters, with an average negative earnings surprise of 0.17%.
Moreover, we note that Roper has underperformed the Zacks categorized Machinery-Gen Industrial industry in the last one year. The company’s shares have increased 19.06% compared with the industry’s gain of 34.91% during the period.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Roper’s asset-light business model and robust M&A activity will likely push its business. The acquisitions of Deltek and ConstructConnect and winning New York City’s MTA project are significant positives. The company's strong dividend policy is also an added positive.
However, the company’s business has been affected because of the weakness in the oil and gas sector. Sluggish global macroeconomic conditions also remain concerns. Stiff competition from the likes of Applied Industrial Technologies, Inc. (AIT - Free Report) , Barnes Group Inc. (B - Free Report) and Chart Industries Inc. (GTLS - Free Report) , is an added concern
For the fourth quarter of 2016, Roper Technologies expects adjusted earnings per share in a range of $1.77 - $1.89.
Roper Technologies, Inc. Price and EPS Surprise
Roper Technologies, Inc. Price and EPS Surprise | Roper Technologies, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Roper Technologies is likely to beat earnings estimates 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. This is not the case here as you will see below:
Zacks ESP: Earnings ESP for Roper Technologies is 0.00%. This is because the Most Accurate estimate and Zacks Consensus Estimate are both pegged at $1.82. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Roper Technologies has a Zacks Rank #2 (Buy). Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>