NEW YORK (TheStreet) -- Roper Industries (ROP) shares are up 1% to $144.23 on Monday after reporting earnings of $1.56 per diluted share that beat analysts estimates by 6 cents per share.
The radio frequency product manufacturer also reported a 12.9% increase in quarterly revenue over the previous year to $885.2 million, ahead of analysts $873.19 million consensus.
Despite the earnings beat, the company issued third quarter guidance between $1.49 - $1.53 per diluted share that was below analysts consensus estimates of $1.57.
Must Read: Warren Buffett's 25 Favorite Stocks
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:
- The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 12.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.53, 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 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
- ROPER INDUSTRIES INC/DE has improved earnings per share by 16.8% 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 ($6.30 versus $5.37).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Industrial Conglomerates industry average. The net income increased by 17.9% when compared to the same quarter one year prior, going from $124.91 million to $147.23 million.
- The gross profit margin for ROPER INDUSTRIES INC/DE is rather high; currently it is at 64.34%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.65% is above that of the industry average.
- You can view the full analysis from the report here: ROP Ratings Report