Roper Technologies, Inc. ROP reported fourth-quarter 2015 adjusted earnings of $1.82 per share, which fell 1.6% year over year and missed the Zacks Consensus Estimate of $1.86.
Revenues of $943.6 million were down 0.3% year over year and also fell below the Zacks Consensus Estimate of $960.5 million. Net orders decreased marginally year over year to $924.1 million.
Weakness in Energy and Industrial technology businessesis proving to be drag on healthy in RF and Medical & Scientific Imaging businesses.
For the full year, adjusted earnings came in at $6.68 per share, up 4% year over year while revenues were up 1% to $3.58 billion.
Segment Revenue Details
Revenues from Medical & Scientific Imaging increased 12.3% year over year to $321.7 million.
Revenues from RF Technology went up 17.4% from the year-ago quarter to $281.9 million.
Revenues from Industrial Technology decreased 17.1% year over year to $182 million.
Revenues from Energy Systems & Controls declined 21% year over year to $158 million.
Margins
Adjusted gross margin increased 190 (basis points) bps to 61.8%. Adjusted operating margin was unchanged from the prior year quarter at 30.1%.
Balance Sheet
Roper Technologies ended the quarter with $778.5 million in cash and equivalents compared with $610.4 million as on Dec 31, 2014. Long-term debt amounted to $3.3 billion compared with $2.2 billion at the end of 2014. For the year ended Dec 31, 2015, the company’s cash flow was $928.8 million and free cash flow was $ 893 million.
Guidance
For the first quarter of 2016, Roper Technologies expects adjusted earnings per share in the range of $1.42-$1.47. For 2016, the company expects adjusted earnings in the range of $6.85-$7.15. Revenues are expected to grow 8% to 10% for 2016 that includes 2% to 4% organic revenue growth. Operating cash flow will hover at $1 billion
Our take
Roper is benefiting from its strategic business model combined with a healthy product mix. Furthermore, the company pursues strategic acquisitions, which are expected to drive growth in the long run. The company expects to spend $1 billion in acquiring strategic companies in the current year.
Also, the company has an optimum mix of highly engineered, niche-oriented products, which help it to gain market share. We believe that Roper’s innovative product pipeline will boost growth going forward.
However, macroeconomic concerns, integration issues due to acquisitions and competition are significant headwinds. The company’s high debt level is also a nagging concern.
Currently, Roper has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader tech space include MeetMe, Inc. MEET, Facebook Inc FB and Alphabet, Inc GOOGL While MeetMe sports a Zacks Rank #1 (Strong Buy), Facebook and Alphabet carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment