Roper Industries Earnings Cheat Sheet: Revenues Rise 20%, Profits Top Estimates

S&P 500 (NYSE:SPY) component Roper Industries Inc. (NYSE:ROP) reported higher profit for the first quarter as revenue showed growth. Roper Industries Inc. designs and manufactures energy systems and controls, scientific and industrial imaging products and software, industrial technology products and radio frequency products and services.

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Roper Industries Earnings Cheat Sheet for the First Quarter

Results: Net income for Roper Industries Inc. rose to $89 million (91 cents/share) vs. $59.7 million (62 cents/share) in the same quarter a year earlier. A rise of 49% from the year earlier quarter.

Revenue: Rose 20.7% to $645.3 million YoY.

Actual vs. Wall St. Expectations: ROP beat the mean analyst estimate of 87 cents/share. Estimates ranged from 85 cents per share to 92 cents per share.

Quoting Management: “Roper is off to a great start in 2011 with organic sales growth of 16% and orders that exceeded our expectations,” said Brian Jellison, Roper’s Chairman, President and CEO. “We are encouraged by broad-based strength across all four of our segments, as each posted double-digit sales and orders growth. As a result of strong operating leverage and exceptional execution by our businesses, we were able to expand both gross margin by 200 basis points and operating margin by 320 basis points in the quarter.”

“With another solid quarter of cash generation, we reduced our outstanding debt by nearly $100 million, bringing net-debt-to-net capitalization to 25% and providing the Company with over $800 million in available liquidity. Our acquisition pipeline is full and we see interesting opportunities for the remainder of the year,” Mr. Jellison continued.

Key Stats: Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.9 percentage points to 54.3% from the year earlier quarter. Over that span, margins have grown on average 2.4 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 49.2% and in the third quarter of the last fiscal year, the figure rose 49.4%.

Over the last five quarters, revenue has increased 17.2% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 24.6% from the year earlier quarter.

Competitors to Watch: Danaher Corporation (NYSE:DHR), ESCO Technologies Inc. (NYSE:ESE), AMETEK, Inc. (NYSE:AME), Emerson Electric Co. (NYSE:EMR), Badger Meter, Inc. (NYSE:BMI), Cognex Corporation (NASDAQ:CGNX), Hurco Companies, Inc. (NASDAQ:HURC), Luna Innovations Inc. (NASDAQ:LUNA), Electro-Sensors, Inc. (NASDAQ:ELSE), and Schmitt Industries, Inc. (NASDAQ:SMIT).

Today’s Performance: Shares of ROP are trading at $87.19 as of April 26, 2011 at 3:41 PM ET, up 1.2% from the previous close.


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