Roper Technologies Q1 Profit Beats View, Lifts 2015 Earnings Outlook

(RTTNews) - Industrial solutions provider Roper Technologies, Inc. (ROP) on Monday reported a 6 percent increase in profit for the first quarter from last year, reflecting higher sales and improved margins.

Adjusted earnings per share for the quarter beat analysts' expectations, while revenues missed their estimates. Looking ahead, the company forecast earnings for the second quarter below Street expectations, but raised its fiscal 2015 earnings outlook.

Brian Jellison, Roper's Chairman, President and CEO said, "Our businesses performed exceptionally well in the quarter, with record first quarter performance for orders, revenue, margins, net earnings and cash flow. Organic revenue increased 5%, with significant contributions from our RF Technology and Medical segments."

The Sarasota, Florida-based company's net earnings for the first quarter were $155.73 million or $1.54 per share, up from $147.23 million or $1.46 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $1.55 per share, compared to $1.46 per share in the year-ago quarter. On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $1.52 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 4 percent to $865.28 million from $834.05 million in the same quarter last year. Adjusted revenue for the quarter was $867.2 million, but missed analysts' consensus estimate of $874.98 million.

In the adjusted sales growth, organic revenue increased 5 percent, while acquisitions resulted in a 3 percent increase.

Industrial technology net sales for the quarter declined 3 percent to $190.73 million, while energy systems & controls sales decreased 10 percent to $139.90 million. Meanwhile, Medical & scientific imaging sales increased 14 percent to $291.70 million, and RF technology sales grew 8 percent to $242.95 million.

Roper Industries' gross margin increased 130 basis points from the year-ago period to 59.9 percent, and operating margin percentage rose 170 basis points to 28.5 percent.

Total new orders for the quarter edged up less than 1 percent from last year to $848.73 million.

Looking ahead to the second quarter, Roper Industries forecast adjusted earnings in a range of $1.59 to $1.64 per share. Analysts expect the company to earn $1.69 per share for the second quarter.

For fiscal 2015, Roper Industries now forecasts adjusted earnings in a range of $6.75 to $6.95 per share, up from the prior range of $6.70 to $6.94 per share. Street expects the company to earn $6.85 per share for the full-year.

The company's guidance for both the periods exclude the impact of any future acquisitions, but includes contributions from completed acquisitions and the increased headwind of a stronger U.S. dollar.

On Friday, April 24, 2015, the company announced the change of its corporate name from Roper Industries, Inc. to Roper Technologies, Inc. to reflect its continued evolution as a diversified technology company. The company's shares are expected to begin trading under its new name effective as of the market open on April 29, 2015. The company's stock ticker symbol remains "ROP."

ROP closed Friday's trading at $169.92, down $0.13 or 0.08 percent on a volume of 660,540 shares.