Roper Industries Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component Roper Industries Inc. (NYSE:ROP) reported higher profit for the second 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.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

Roper Industries Earnings Cheat Sheet for the Second Quarter

Results: Net income for Roper Industries Inc. rose to $106.3 million ($1.08 per share) vs. $71.3 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 49.1% from the year earlier quarter.

Revenue: Rose 23.4% to $699.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ROP reported adjusted net income of $1.03 per share. By that measure, the company beat the mean estimate of 99 cents per share. It beat the average revenue estimate of $680.1 million.

Quoting Management: “We are pleased to deliver another record quarter, with double-digit sales and orders growth in all four segments,” said Brian Jellison, Roper’s Chairman, President and CEO. “Operating leverage from the 16% organic sales growth combined with nimble execution throughout our businesses led to widespread margin expansion and record cash flow. Our book-to-bill ratio exceeded 1.0 for the eighth straight quarter and we enter the second half with a record backlog of $872 million.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.8%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 24.6% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.6 percentage point to 53.9% from the year earlier quarter. Over that span, margins have grown on average two percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 49% and in the fourth quarter of the last fiscal year, the figure rose 49.2%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 4 cents in the first quarter, by 11 cents in the fourth quarter of the last fiscal year, and by 8 cents in the third quarter of the last fiscal year.

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

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)

More from The Cheat Sheet