Roper Technologies (ROP) Q3 Earnings: Will It Disappoint?
Zacks Investment Research | Oct 26, 2016 05:53AM ET
Roper Technologies, Inc. (NYSE:ROP) is set to report third-quarter 2016 results on Oct 31, before the market opens. Last quarter, it posted a negative earnings surprise of 3.11%. Let’s see how things are shaping up for this announcement.
Factors at Play
Roper Technologies’ business has been affected because of the weakness in the oil and gas sector. In addition, unexpected project delays in certain traffic and toll projects continue to weigh on its financials. Roper also expects its business to be negatively impacted by Brexit and other macroeconomic headwinds. As a result in the last quarter, the company slashed its guidance for 2016.
Nonetheless, the company’s asset-light business model and robust M&A activity will likely provide some respite in the long run. The company's strong dividend policy is also an added positive.
For the third quarter of 2016, Roper Technologies expects adjusted earnings per share in the range of $1.59 - $1.63.
Earnings Whispers
Our proven model does not conclusively show that Roper Technologies is likely to beat earnings 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. That is not the case here as you will see below.
Zacks ESP: Roper Technologies’ Earnings ESP is -5.77% as the Most Accurate estimate stands at $1.60 while the Zacks Consensus Estimate is pegged higher at $1.62. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises
Zacks Rank: Roper Technologies carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are few stocks that, as per our model, have the right combination of the two key components:
NN Inc. (NASDAQ:NNBR) has an Earnings ESP of +4.35% and a Zacks Rank #1. You can see .
Mercadolibre, Inc. (NASDAQ:MELI) with an Earnings ESP of +8.24% and a Zacks Rank #1
Amazon.com Inc. (NASDAQ:AMZN) has an Earnings ESP of +10.47% and a Zacks Rank #1.
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