Roper Industries Earnings: Here’s Why Investors are Ambivalent Now

Roper Industries Inc. (NYSE:ROP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Roper Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.51% to $1.27 in the quarter versus EPS of $1.09 in the year-earlier quarter.

Revenue: Rose 4.21% to $741 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Roper Industries Inc. reported adjusted EPS income of $1.27 per share. By that measure, the company beat the mean analyst estimate of $1.22. It missed the average revenue estimate of $776.55 million.

Quoting Management: “We are pleased to deliver record first quarter performance, establishing records for revenue, orders, gross margin, operating profit, net earnings and cash flow,” said Brian Jellison, Roper’s Chairman, President and CEO. “Despite a challenging global economic environment, our businesses performed exceptionally well. Gross margin expanded 240 basis points to 57.4% and free cash flow increased 22% to $160 million. We secured significant orders for second half delivery, helping increase our backlog to $1.0 billion and supporting our ability to deliver improving organic growth throughout the year.”

Key Stats (on next page)…

Revenue decreased 8.51% from $809.91 million in the previous quarter. EPS decreased 14.19% from $1.48 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.39 to a profit $1.38. For the current year, the average estimate has moved up from a profit of $5.69 to a profit of $5.73 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]