NEW YORK (TheStreet) -- Roper Industries (ROP - Get Report) shares are up 7.4% to $138.82 on Monday following the release of the company's first quarter earnings results.
The company posted a year over year quarterly revenue increase of 13% to $834 million, beating analyst consensus estimates of $829.22 million.
Net earnings for the quarter were $147 million, or $1.46 per diluted share, beating analysts estimates by 11 cents.
: Warren Buffett's 10 Favorite Growth Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates ROPER INDUSTRIES INC/DE as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROPER INDUSTRIES INC/DE (ROP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ROP's revenue growth has slightly outpaced the industry average of 5.1%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ROP has a quick ratio of 1.66, which demonstrates the ability of the company to cover short-term liquidity needs.
- ROPER INDUSTRIES INC/DE has improved earnings per share by 14.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ROPER INDUSTRIES INC/DE increased its bottom line by earning $5.37 versus $4.85 in the prior year. This year, the market expects an improvement in earnings ($6.20 versus $5.37).
- The gross profit margin for ROPER INDUSTRIES INC/DE is rather high; currently it is at 65.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.63% significantly outperformed against the industry average.
- Net operating cash flow has increased to $235.78 million or 11.40% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.39%.
- You can view the full analysis from the report here: ROP Ratings Report