Roper (ROP) To Report Q4 Earnings: What's In The Cards?

Roper Technologies (NYSE:ROP) is slated to report fourth-quarter 2017 results on Feb 2.

Notably, the company beat the Zack Consensus Estimate in each of the trailing four quarters, delivering an average positive surprise of 2.80%.

Last quarter, the company reported earnings of $2.36 per share, which beat the Zacks Consensus Estimate of $2.30. Moreover, adjusted revenues grew 24% to $1.17 billion.

Organic revenues were up 5%, while orders increased 26.1% year over year to $1.171 billion at the end of the quarter.

For fourth-quarter 2017, Roper expects adjusted earnings between $2.56 and $2.62 per share. The Zacks Consensus Estimate for earnings is pegged at $2.61, up 40.3% year over year. Moreover, the consensus estimate for revenues is at $1.23 billion.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

Roper’s distinctive asset-light business model is likely to boost forthcoming financial results. The company holds a dominant position in the niche markets where it operates. It has an optimum mix of highly engineered, oriented products, which provide the company bargaining power and boost market share.

Further, solutions like Deltek, Sunquest and Strata have won accolades, which will help in the expansion of customer base.

Moreover, Roper benefits from the successful integration of ConstructConnect and Deltek. It expects low single-digit organic growth in the fourth quarter. ConstructConnect’s improving recurring revenue base is noteworthy. The acquisition of Denmark-based WorkBook will enhance offerings of Deltek’s professional services platform.

The buyout of Florida-based Handshake, a provider of knowledge management software, is expected to drive growth for Aderant. Additionally, increasing net subscriber growth for the Freight Matching business is a positive.

However, sluggish global macroeconomic conditions and stiff competition are overhangs.

Roper Technologies, Inc. Price and EPS Surprise

Roper Technologies, Inc. Price and EPS Surprise | Roper Technologies, Inc. Quote

What Does Our Model Say?

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Roper has a Zacks Rank #2 and an Earnings ESP of -0.03%, which indicates an unlikely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks you may want to consider as our proven model shows that it has the right combination of elements to post an earnings beat this quarter.

Kemet (NYSE:KEM) has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA (NASDAQ:NVDA) has an Earnings ESP of +4.71% and a Zacks Rank #2.

Square (NYSE:SQ) has an Earnings ESP of +1.84% and a Zacks Rank #2.

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