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Roper (ROP) to Report Q1 Earnings: What's in the Offing?
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Roper Technologies, Inc. (ROP - Free Report) is scheduled to report first-quarter 2020 results on Apr 28, before market open.
The company reported better-than-expected results in each of the trailing four quarters, the average earnings surprise being 6.08%. Notably, in the last reported quarter, earnings of $3.39 per share surpassed the Zacks Consensus Estimate of $3.34 by 1.5%.
In the past three months, the firm’s shares have lost 15.7% compared with the industry’s decline of 22.2%.
Key Factors
Roper is likely to have benefited from strong momentum across its network software and medical products businesses in the first quarter. Notably, strength across its DAT, MHA and TransCore businesses along with the Foundry acquisition (closed in April 2019) is likely to have bolstered revenues of the company’s Network Software & Systems segment. Notably, the Zacks Consensus Estimate for first-quarter revenues of the Network Software & Systems segment is pegged at $430 million, indicating 24.3% growth from the year-ago quarter’s reported number.
Also, the growing popularity of the Deltek business’ enterprise software offerings and solid booking growth for software products across the company’s Aderant, Data Innovations and Strata businesses are likely to have strengthened the Application Software segment’s revenues in the to-be-reported quarter. The consensus estimate for first-quarter revenues from the Application Software segment is pegged at $396 million, suggesting 3.9% growth on a year-over-year basis.
Moreover, the company’s unique asset-light business model and its strategy to expand business across niche markets are likely to have supported first-quarter revenues. Further, its continued focus on improving operational efficiency might have been beneficial.
However, softness in the company’s short-cycle industrial businesses is likely to get reflected in the Measurement & Analytical Solutions segment’s top-line number. Further, weakness in upstream oil and gas businesses is anticipated to have affected Roper’s Process Technologies segment in the first quarter. Notably, the consensus estimates for Measurement & Analytical Solutions and Process Technologies segments’ revenues stand at $351 million and $144 million, respectively, implying a 12.6% and 9.1% year-over-year decrease.
In addition, the impacts of the coronavirus outbreak on the demand for the company’s products along with the governmental regulations imposed in response to the crisis might get reflected in Roper’s first-quarter results.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
But that is not the case here as we will see below.
Earnings ESP: Roper has an Earnings ESP of -5.05% as the Most Accurate Estimate is pegged at $2.71, lower than the Zacks Consensus Estimate of $2.85.
Axon Enterprise, Inc. has an Earnings ESP of +2.13% and a Zacks Rank #3.
Ball Corporation has an Earnings ESP of +1.56% and a Zacks Rank of 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Roper (ROP) to Report Q1 Earnings: What's in the Offing?
Roper Technologies, Inc. (ROP - Free Report) is scheduled to report first-quarter 2020 results on Apr 28, before market open.
The company reported better-than-expected results in each of the trailing four quarters, the average earnings surprise being 6.08%. Notably, in the last reported quarter, earnings of $3.39 per share surpassed the Zacks Consensus Estimate of $3.34 by 1.5%.
In the past three months, the firm’s shares have lost 15.7% compared with the industry’s decline of 22.2%.
Key Factors
Roper is likely to have benefited from strong momentum across its network software and medical products businesses in the first quarter. Notably, strength across its DAT, MHA and TransCore businesses along with the Foundry acquisition (closed in April 2019) is likely to have bolstered revenues of the company’s Network Software & Systems segment. Notably, the Zacks Consensus Estimate for first-quarter revenues of the Network Software & Systems segment is pegged at $430 million, indicating 24.3% growth from the year-ago quarter’s reported number.
Also, the growing popularity of the Deltek business’ enterprise software offerings and solid booking growth for software products across the company’s Aderant, Data Innovations and Strata businesses are likely to have strengthened the Application Software segment’s revenues in the to-be-reported quarter. The consensus estimate for first-quarter revenues from the Application Software segment is pegged at $396 million, suggesting 3.9% growth on a year-over-year basis.
Moreover, the company’s unique asset-light business model and its strategy to expand business across niche markets are likely to have supported first-quarter revenues. Further, its continued focus on improving operational efficiency might have been beneficial.
However, softness in the company’s short-cycle industrial businesses is likely to get reflected in the Measurement & Analytical Solutions segment’s top-line number. Further, weakness in upstream oil and gas businesses is anticipated to have affected Roper’s Process Technologies segment in the first quarter. Notably, the consensus estimates for Measurement & Analytical Solutions and Process Technologies segments’ revenues stand at $351 million and $144 million, respectively, implying a 12.6% and 9.1% year-over-year decrease.
In addition, the impacts of the coronavirus outbreak on the demand for the company’s products along with the governmental regulations imposed in response to the crisis might get reflected in Roper’s first-quarter results.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
But that is not the case here as we will see below.
Earnings ESP: Roper has an Earnings ESP of -5.05% as the Most Accurate Estimate is pegged at $2.71, lower than the Zacks Consensus Estimate of $2.85.
Roper Technologies, Inc. Price and EPS Surprise
Roper Technologies, Inc. price-eps-surprise | Roper Technologies, Inc. Quote
Zacks Rank: The company carries a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right mix of elements to beat estimates this time around:
TPI Composites, Inc. (TPIC - Free Report) has an Earnings ESP of +74.55% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon Enterprise, Inc. has an Earnings ESP of +2.13% and a Zacks Rank #3.
Ball Corporation has an Earnings ESP of +1.56% and a Zacks Rank of 3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>