The 10-second takeaway
For the quarter ended June 30 (Q2), Roper Industries met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Gross margins increased, operating margins dropped, net margins contracted.
Roper Industries logged revenue of $804.9 million. The seven analysts polled by S&P Capital IQ hoped for revenue of $806.7 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $724.9 million.
EPS came in at $1.31. The 11 earnings estimates compiled by S&P Capital IQ averaged $1.30 per share. Non-GAAP EPS of $1.31 for Q2 were 14% higher than the prior-year quarter's $1.15 per share. GAAP EPS of $1.11 for Q2 were 3.5% lower than the prior-year quarter's $1.15 per share.
For the quarter, gross margin was 56.8%, 190 basis points better than the prior-year quarter. Operating margin was 22.9%, 180 basis points worse than the prior-year quarter. Net margin was 14.2%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $873.8 million. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $3.33 billion. The average EPS estimate is $5.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 116 members out of 125 rating the stock outperform, and nine members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Roper Industries a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Roper Industries is hold, with an average price target of $128.44.
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