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Roper Technologies (ROP) Q4 Earnings Beat, Revenues Up Y/Y

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Roper Technologies, Inc. (ROP - Free Report) 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.
 

Roper Technologies, Inc. Price, Consensus and EPS Surprise

 

Roper Technologies, Inc. Price, Consensus and EPS Surprise | Roper Technologies, Inc. Quote

 

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.

Conclusion

Roper Technologies holds a dominant position in most of the markets where it operates. The company has an optimum mix of highly-engineered and niche-oriented products, which help it gain market share. We are optimistic about the company’s strategic expansion strategy, primarily through accretive acquisitions.

Zacks Rank & Other Stocks to Consider

Roper Technologies carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader technology sector are Micron Technology (MU - Free Report) , Lam Research (LRCX - Free Report) and The Trade Desk (TTD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Micron, Lam Research and The Trade Desk is projected at 10%, 14.9% and 25%, respectively.

 

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