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Roper Technologies (ROP) Q2 Earnings: What's in the Cards?

Roper Technologies, Inc. ROP is slated to report second-quarter 2017 results on Jul 31 before the opening bell. The company posted a positive earnings surprise of 5.5% in the last quarter. Moreover, it has delivered an average positive earnings surprise of 1.61% in the trailing four quarters.

However, in the last reported quarter, despite a 20.4% jump year over year, revenues of $1.086 billion missed the consensus mark of $1.094 billion.

For second-quarter 2017, Roper Technologies expects adjusted diluted earnings per share to be in a range of $2.16–$2.24.

Roper Technologies, Inc. Price and EPS Surprise


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

Notably, the stock has gained 27.7% year to date, outperforming the industry’s 14.4% rally.

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

Factors to Consider

We continue to believe that the Roper Technologies’ distinctive asset-light business model will boost forthcoming financial results.

Further, Roper Technologies holds a dominant position in the niche markets where it operates. The company has an optimum mix of highly engineered, oriented products, consequently gaining bargaining power and market share.

Additionally, we also remain positive about Roper Technologies’ strategic expansion strategy primarily through accretive acquisitions. Further, its strong dividend policy is also an added positive.

However, the company’s business continues to be affected by weakness in the oil and gas sector. This apart, sluggish global macroeconomic conditions coupled with stiffening competition remain overhangs.

Earnings Whispers

Our proven model does not conclusively show that Roper Technologies is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP: Roper Technologies currently has an Earnings ESP of 0.00%. This is because the Most Accurate estimate and Zacks Consensus Estimate are both pegged at $2.22. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Roper Technologies carries a Zacks Rank #3. Though a Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:

Kemet Corp. KEM with an Earnings ESP of +11.11% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank Stocks here.

Five9, Inc. FIVN with an Earnings ESP of +10.00% and a Zacks Rank #1.

CGI Group, Inc. GIB with an Earnings ESP of +5.71% and a Zacks Rank #1.

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