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Why Is Roper Technologies (ROP) Down 1.7% 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 1.7% 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.
Roper Technologies Beats on Q1 Earnings, Ups '18 View
Roper reported first-quarter 2018 adjusted earnings of $2.61 per share, which beat the Zacks Consensus Estimate of $2.49 and improved 24% on a year-over-year basis.
Adjusted revenues of $1.2 billion rose 9% year over year, higher than the Zacks Consensus Estimate of $1.16 billion. Organic revenues grew 6%, while acquisitions/divestitures contributed 1% to the top-line growth.
The company enjoyed exceptional operational execution and broad-based growth in all its segments. The company’s software and network businesses maintained the momentum and the product businesses delivered robust growth as well as strong operating leverage.
Segment Details
For the quarter, Medical & Scientific Imaging revenues increased 5.2% year over year to $366.3 million, while RF Technology revenues surged 12.1% from the year-ago quarter to $481.6 million.
Industrial Technology revenues increased 17.8% year over year to $216.1 million. Also, revenues from Energy Systems & Controls grew 10.7% year over year to $138.5 million.
Adjusted gross margin expanded 30 basis points (bps) to 62.5% in the quarter.
Segment wise, Medical & Scientific Imaging, Industrial Technology and gross margins contracted 100 bps and 50 bps, respectively. However, RF Technology and Energy Systems & Controls gross margins expanded 410 bps and 40 bps, respectively.
Guidance
Buoyed by the robust performance, Roper Technologies raised 2018 guidance. The company expects adjusted earnings between $11.08 and $11.32, up from the previous range of $10.88-$11.20.
For second-quarter 2018, Roper Technologies projects adjusted earnings between $2.65 and $2.71 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been two revisions higher for the current quarter compared to three lower.
At this time, ROP has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, ROP has a Zacks Rank #2 (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 1.7% 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 1.7% 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.
Roper Technologies Beats on Q1 Earnings, Ups '18 View
Roper reported first-quarter 2018 adjusted earnings of $2.61 per share, which beat the Zacks Consensus Estimate of $2.49 and improved 24% on a year-over-year basis.
Adjusted revenues of $1.2 billion rose 9% year over year, higher than the Zacks Consensus Estimate of $1.16 billion. Organic revenues grew 6%, while acquisitions/divestitures contributed 1% to the top-line growth.
The company enjoyed exceptional operational execution and broad-based growth in all its segments. The company’s software and network businesses maintained the momentum and the product businesses delivered robust growth as well as strong operating leverage.
Segment Details
For the quarter, Medical & Scientific Imaging revenues increased 5.2% year over year to $366.3 million, while RF Technology revenues surged 12.1% from the year-ago quarter to $481.6 million.
Industrial Technology revenues increased 17.8% year over year to $216.1 million. Also, revenues from Energy Systems & Controls grew 10.7% year over year to $138.5 million.
Adjusted gross margin expanded 30 basis points (bps) to 62.5% in the quarter.
Segment wise, Medical & Scientific Imaging, Industrial Technology and gross margins contracted 100 bps and 50 bps, respectively. However, RF Technology and Energy Systems & Controls gross margins expanded 410 bps and 40 bps, respectively.
Guidance
Buoyed by the robust performance, Roper Technologies raised 2018 guidance. The company expects adjusted earnings between $11.08 and $11.32, up from the previous range of $10.88-$11.20.
For second-quarter 2018, Roper Technologies projects adjusted earnings between $2.65 and $2.71 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been two revisions higher for the current quarter compared to three lower.
Roper Technologies, Inc. Price and Consensus
Roper Technologies, Inc. Price and Consensus | Roper Technologies, Inc. Quote
VGM Scores
At this time, ROP has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, ROP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.