Roper Technologies (ROP) Tops Q1 EPS by 12c, Beats on Revenues; Boosts FY18 EPS Guidance Above Consensus

Roper Technologies (NYSE: ROP) reported Q1 EPS of $2.61, $0.12 better than the analyst estimate of $2.49. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.17 billion.

First quarter GAAP revenue increased 11% to $1.20 billion, adjusted revenue increased 9% to $1.20 billion, and organic revenue increased 6%. GAAP gross margin expanded 90 basis points to 62.4% and adjusted gross margin expanded 30 basis points to 62.5%.

GAAP earnings before taxes grew 21% to $255 million and adjusted earnings before taxes grew 10% to $332 million. GAAP DEPS was $2.03, a 33% increase, while adjusted DEPS was $2.61, a 24% increase. Operating cash flow was $282 million, representing 23% of adjusted revenue.

“We had a record first quarter with outstanding execution and broad-based growth across each of our segments,” said Brian Jellison, Roper’s Chairman, President, and CEO. “Our software and network businesses continued their outstanding performance with superior cash flow, while our product businesses delivered exceptional growth and strong operating leverage.”

“Our strong cash performance and tax reform-driven repatriation allowed us to reduce debt by $535 million in the first quarter. We have now reduced leverage by $1.6 billion since December 2016. Given the positive momentum across our businesses and an improved outlook, we are raising our 2018 guidance,” concluded Mr. Jellison.

2018 Guidance

• The Company now expects full year Adjusted DEPS of $11.08 - $11.32, compared to previous guidance of $10.88 - $11.20.
• For the second quarter of 2018, the Company expects Adjusted DEPS of $2.65 - $2.71.

GUIDANCE:

Roper Technologies sees FY2018 EPS of $11.08-$11.32, versus the consensus of $11.08.

For earnings history and earnings-related data on Roper Technologies (ROP) click here.

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