Headquartered in Sarasota, Florida, Roper Industries Inc. (ROP) designs, manufactures and distributes medical and scientific imaging products and software, radio frequency (RF) products, services and application software, industrial technology products and energy systems and controls products and solutions.
Roper Industries caters to selected segments of a broad range of markets, which include oil & gas, scientific research, medical diagnostics, semiconductor, refrigeration, automotive, water & wastewater, power generation, agricultural irrigation and other niche industries.
However, the company is significantly exposed to cyclical slowdown in markets like Energy and Industrial. Sluggish macroeconomic growth is a concern for the company, as it lowers infrastructure spending, which negatively impacts Roper’s overall growth. In addition, Roper Industries faces significant competition in most of its industries. In order to maintain its dominant market share, the company continues to spend on research & development (R&D).
Other Developments
In Dec 2014, Roper Industries announced 25% hike in its dividend payment to 25 cents per share. The increased dividend was paid on Jan 23, to stockholders of record on Jan 9, 2015.
Recently, Roper Industries announced acquisition of Chicago-based healthcare software company — Strata Decision Technology. We believe the deal fortifies Roper Industries strength in offering cloud based services in health care market with Strata Decision reach across 1000 hospitals in the U.S.
Zacks Rank: Currently, Roper Industries has a Zacks Rank#4 (Sell) but that could change following its fourth quarter 2014 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: Roper Industries beat on earnings. Adjusted Earnings per share came in at $1.85, higher than the Zacks Consensus Estimate of $1.79. Earnings also increased 12% year over year.
Revenue: Revenues of $948 million came below the Zacks Consensus Estimate of $954 million but grew 7% year over year.
Key Stats: Operating margin of the company increased of 110 basis points driven by a higher revenue base.
Stock Price: Shares prices did not show any movement in the pre-market trading session.
Check back later for our full write up on this ROP earnings report later!
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