It has been about a month since the last earnings report for Roper Technologies, Inc. ROP. Shares have added about 4.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Roper Beats Earnings Estimates in Q1, Misses Revenues
Roper Technologies reported first-quarter 2017 adjusted earnings per share of $2.11, beating the Zacks Consensus Estimate of $2.00. However, despite a 20.4% jump year over year, revenues of $1.086 billion missed the consensus mark of $1.094 billion.
Adjusted revenues grew 22% to $1.11 billion. Organic revenues were up 5% while orders increased 20.2% year over year to $1.114 billion in the quarter.
Roper maintained that acquisitions have helped its performance, especially the software and network businesses like ConstructConnect and Deltek.
Segment Revenue Details
Revenues from Medical & Scientific Imaging increased 4.8% year over year to $348.2 million.
Revenues from RF Technology went up 53.3% from the year-ago quarter to $429.6 million.
Revenues from Industrial Technology increased 7.1% year over year to $183.4 million.
Also, revenues from Energy Systems & Controls grew nearly 5.3% year over year to $125.1 million.
Margins
Adjusted gross margin increased 10 basis points (bps) to 62.2%. Adjusted EBITDA was $362 million, up 18% year over year.
Balance Sheet and Cash Flow
Roper Technologies ended the quarter with approximately $730.7 million in cash and equivalents, compared with $757.2 million as on Dec 31, 2016. Long-term debt was $5.440 billion, compared with $5.809 billion as of Dec 31, 2016.
In the first quarter, the company’s adjusted operating cash flow was $378 million while adjusted free cash flow was $360 million.
Guidance
For the second quarter of 2017, Roper Technologies expects adjusted earnings per share in a range of $2.16–$2.24.
For 2017, the company expects adjusted earnings per share in a range of $8.98–$9.28, compared with $8.82–$9.22 per share.Adjusted revenues are expected to be up in a band of 21% to 22% year over year. Organic revenues are expected to be up in a range of 4% to 5%. Operating cash flow is expected to be $1.150 billion, up 15% year over year.
For Industrial Technology,Medical & Scientific Imaging as well as RF Technologies, the company expects revenues to be up in mid single digits for the year.