Roper Technologies (ROP) Tops Q1 EPS by 13c, Revenues Beat; Lowers 2Q & FY20 EPS Guidance Below Consensus

Roper Technologies (NYSE: ROP) reported Q1 EPS of $3.05, $0.13 better than the analyst estimate of $2.92. Revenue for the quarter came in at $1.35 billion versus the consensus estimate of $1.31 billion.

“Our primary focus during this unprecedented time is on the safety and well-being of our employees and their families,” said Neil Hunn, Roper’s President & CEO. “All of our businesses with manufacturing facilities have been deemed essential and remain operational, supplying our customers with vital and necessary products. Additionally, all of our businesses are highly productive and operational in their work-from-home environments.”

“Clearly, this global health crisis has created tremendous uncertainty in the future economic outlook,” said Mr. Hunn. “However, for nearly two decades, Roper has transformed our business model to be one that is characterized by high levels of recurring revenue, direct channel access, low fixed costs, low capital expenditure requirements, and high levels of operating cash flow. For these reasons, and many others, we are highly confident in our ability to successfully navigate the situation. We will continue to invest in innovation and talent, enabling Roper to be on the offensive during and after this period.”

“We expect our cash flow generation capability to remain very strong,” continued Mr. Hunn. “Our balance sheet is exceptionally well positioned with $1 billion in cash and an undrawn $2.5 billion revolving line of credit. Given these factors, we will continue to pursue our disciplined capital deployment strategy.”

GUIDANCE:

Roper Technologies sees Q2 2020 EPS of $2.50-$2.70, versus the consensus of $2.98.

Roper Technologies sees FY2020 EPS of $11.60-$12.60, versus the consensus of $12.71.

• The Company’s previous guidance provided on January 30, 2020 did not reflect any impact from COVID-19. Based on current assumptions, the Company now expects full year adjusted DEPS of $11.60 - $12.60.
• For the second quarter, the Company expects adjusted DEPS of $2.50 - $2.70.
• The Company’s guidance excludes the impact of unannounced future acquisitions or divestitures.

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

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