Roper Industries Inc.
) reported first-quarter 2014 non-GAAP earnings of $1.46 per
share, convincingly beating the Zacks Consensus Estimate of $1.35
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Roper's total revenue increased 13.1% year over year to $834.0
million in the quarter. Revenues beat the Zacks Consensus
Estimate of $829.0 million. Acquisitions and divestitures
accounted for 5.0% of the revenue growth in the quarter. Organic
revenues increased 7.0% on a year-over-year basis.
Growth across most of its business segments contributed to the
year-over-year increase in revenues. Revenues from Medical &
Scientific Imaging and RF Technology increased 27.8% and 8.1%,
respectively. Industrial Technology and Energy Systems &
Controls moved up 8.1% and 6.5%, respectively, compared with the
Gross profit increased 16.0% year over year to $488.9 million.
Gross margin in the reported quarter increased to 58.6% from
57.2% in the year-ago quarter, primarily driven by a better mix
and higher revenues.
Income from operations increased 20.6% year over year to $223.4
million. The upside in operating income was attributable to
improved sales. Operating margin improved from 25.1% to 26.8% on
a year-over-year basis.
Net income was $147.2 million or $1.46 per share compared with
$124.9 million or $1.25 per share in the year-ago quarter.
Roper exited the quarter with $502.9 million in cash and cash
equivalents and total debt of $2.30 billion (including the
current portion), compared with $459.9 million in cash and cash
equivalents and total debt of $2.60 billion (including the
current portion) in the previous quarter. Roper reported free
cash flow of $202.2 million at the end of the first quarter.
Roper expects second quarter adjusted earnings to be between
$1.46 and $1.51 per share For the full year, the company expects
adjusted earnings to be in the range of $6.22 - $6.36 per share,
which is up from the previous guidance of $6.05 - $6.25 while the
Zacks Consensus Estimate for the same is pegged at $6.17 per
Roper reported encouraging first quarter results. Also,
management provided upbeat guidance for the upcoming second
quarter of 2014 as well as for the full year 2014.
We believe that a strong backlog coupled with robust organic
growth will drive earnings going forward. Moreover, accretive
acquisitions will expand the company's product portfolio,
providing it a significant competitive edge over its peers.
However, macroeconomic concerns, integration issues due to
acquisitions and competition from
) are possible headwinds for the company.
Currently, Roper has a Zacks Rank #3 (Hold).