Roper Tops 4Q Profit Expectations, Predicts Strong Fiscal 2013

By IndustrialsFOXBusiness

Led by the addition of Sunquest and other acquisitions, Roper Industries (NYSE:ROP) revealed sharply higher fourth-quarter earnings that topped expectations on Monday despite a disappointing increase in sales.

The company also unveiled an upbeat outlook on the current fiscal year, anticipating full-year non-GAAP earnings between $5.60 and $5.82, bracketing the consensus view of $5.69.

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The Sarasota, Fla.-based maker of industrial electronic equipment reported net earnings of $143.5 million, or $1.44, up 18% compared with a year-earlier profit of $121.6 million, or $1.23.

Excluding one-time items, Roper earned $1.48 a share, nudging two pennies ahead of average analyst estimates in a Thomson Reuters poll.

"Our businesses performed exceptionally well in the fourth quarter, as we established records for revenue, orders, gross margin, operating profit, net earnings and cash flow," said Roper CEO Brian Jellison.

Revenue for the three-month period grew 10% to $810 million from $739.2 million in 2011, but missed the Street’s view of $819.2 million.

Roper invested heavily in acquisitions during the year, including buying Sunquest Information Systems in July for $1.4 billion in an effort to give a boost to its medical-equipment business.

The company is expecting first-quarter EPS excluding special items in the range of $1.19 to $1.23, below average analyst estimates of $1.30.