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Roper (ROP) Earnings Surpass Estimates in Q1, Decline Y/Y
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Roper Technologies, Inc. (ROP - Free Report) has delivered a positive earnings surprise of 7% in first-quarter 2020.
Adjusted earnings were $3.05 per share, surpassing the Zacks Consensus Estimate of $2.85. However, the bottom line decreased 7.6% from the year-ago quarter number of $3.30 per share.
Inside the Headlines
Roper’s net revenues were $1,350.7 million, up 5% year over year. Notably, adjusted revenues totaled $1,353 million, up 5% year over year. The rise was primarily driven by 4% organic growth and 2% gain from acquired assets. Also, the top line beat the Zacks Consensus Estimate of $1,286 million.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
The company reports revenues under four segments. A brief discussion of the quarterly results is provided below.
Application Software’s revenues totaled $405.1 million, representing 30% of the quarter’s revenues. On a year-over-year basis, the segment’s revenues grew 6.3%.
Network Software & Systems generated revenues of $438.2 million, accounting for 32.4% of first-quarter revenues. Sales grew 26.6% year over year.
Measurement & Analytical Solutions generated revenues of $365.2 million, accounting for roughly 27% of the quarter’s revenues. Sales declined 9.1% year over year.
Process Technologies generated revenues of $142.2 million, accounting for 10.6% of the quarter’s revenues. Sales were down 10.3% year over year.
Margin Details
In the first quarter, Roper’s cost of sales increased 3.6% year over year to $493.9 million. Cost of sales was 36.6% of the quarter’s revenues compared with 37% a year ago. Adjusted gross profit increased 6% to $859 million, with margin of 63.5% reflecting an expansion of 50 basis points (bps).
Selling, general and administrative expenses increased 9.3% to $507.6 million. It represented 37.6% of total revenues compared with 36.1% in the year-ago quarter. Operating profit improved 2.3% to $393.6 million, with margin of 29.1%, down 80 bps year over year.
Balance Sheet & Cash Flow
Exiting the first quarter, Roper had cash and cash equivalents of $999.8 million compared with $709.7 million recorded on Dec 31, 2019. Long-term debt was $4,674.2 million compared with $4,673.1 million at the end of 2019.
In the first three months of 2020, the company generated net cash of $363.9 million from operating activities, up 25.4% year over year.
Capital expenditure during the first quarter totaled $7.9 million, lower than the year-ago figure of $15.8 million. Adjusted free cash flow in the quarter was up 13% to $353 million on a year-over-year basis.
Outlook
For 2020, adjusted earnings per share are anticipated to be $11.60-$12.60.
For the second quarter of 2020, earnings are projected to be $2.50-$2.70 per share.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Intellicheck delivered a positive earnings surprise of 36.91%, on average, in the trailing four quarters.
Broadwind delivered a positive earnings surprise of 10.42%, on average, in the trailing four quarters.
Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Roper (ROP) Earnings Surpass Estimates in Q1, Decline Y/Y
Roper Technologies, Inc. (ROP - Free Report) has delivered a positive earnings surprise of 7% in first-quarter 2020.
Adjusted earnings were $3.05 per share, surpassing the Zacks Consensus Estimate of $2.85. However, the bottom line decreased 7.6% from the year-ago quarter number of $3.30 per share.
Inside the Headlines
Roper’s net revenues were $1,350.7 million, up 5% year over year. Notably, adjusted revenues totaled $1,353 million, up 5% year over year. The rise was primarily driven by 4% organic growth and 2% gain from acquired assets. Also, the top line beat the Zacks Consensus Estimate of $1,286 million.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. price-consensus-eps-surprise-chart | Roper Technologies, Inc. Quote
The company reports revenues under four segments. A brief discussion of the quarterly results is provided below.
Application Software’s revenues totaled $405.1 million, representing 30% of the quarter’s revenues. On a year-over-year basis, the segment’s revenues grew 6.3%.
Network Software & Systems generated revenues of $438.2 million, accounting for 32.4% of first-quarter revenues. Sales grew 26.6% year over year.
Measurement & Analytical Solutions generated revenues of $365.2 million, accounting for roughly 27% of the quarter’s revenues. Sales declined 9.1% year over year.
Process Technologies generated revenues of $142.2 million, accounting for 10.6% of the quarter’s revenues. Sales were down 10.3% year over year.
Margin Details
In the first quarter, Roper’s cost of sales increased 3.6% year over year to $493.9 million. Cost of sales was 36.6% of the quarter’s revenues compared with 37% a year ago. Adjusted gross profit increased 6% to $859 million, with margin of 63.5% reflecting an expansion of 50 basis points (bps).
Selling, general and administrative expenses increased 9.3% to $507.6 million. It represented 37.6% of total revenues compared with 36.1% in the year-ago quarter. Operating profit improved 2.3% to $393.6 million, with margin of 29.1%, down 80 bps year over year.
Balance Sheet & Cash Flow
Exiting the first quarter, Roper had cash and cash equivalents of $999.8 million compared with $709.7 million recorded on Dec 31, 2019. Long-term debt was $4,674.2 million compared with $4,673.1 million at the end of 2019.
In the first three months of 2020, the company generated net cash of $363.9 million from operating activities, up 25.4% year over year.
Capital expenditure during the first quarter totaled $7.9 million, lower than the year-ago figure of $15.8 million. Adjusted free cash flow in the quarter was up 13% to $353 million on a year-over-year basis.
Outlook
For 2020, adjusted earnings per share are anticipated to be $11.60-$12.60.
For the second quarter of 2020, earnings are projected to be $2.50-$2.70 per share.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks are Intellicheck, Inc. (IDN - Free Report) , Broadwind Energy, Inc. (BWEN - Free Report) and Acco Brands Corporation (ACCO - Free Report) . All the companies presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intellicheck delivered a positive earnings surprise of 36.91%, on average, in the trailing four quarters.
Broadwind delivered a positive earnings surprise of 10.42%, on average, in the trailing four quarters.
Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>