Wednesday, engineered products and solutions provider Roper Industries, Inc. (ROP) reported an increase in fourth quarter earnings despite a 4% decline in sales, helped by expanded margins. Earnings and sales for the quarter topped analysts estimates. The company also provided earnings outlook for the first quarter and fiscal 2010.
Net earnings for the quarter rose to $72 million from $70.9 million in the corresponding period last year. Earnings per share were flat at $0.77 per share in both the quarters. Share count for the quarter rose to 93.37 million from 92.34 million in the year-ago quarter.
Adjusted earnings per share were $0.81, which excludes $0.04 of restructuring and acquisition charges. On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.70 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly sales declined 4% to $554 million from $575.86 million in the the same period last year, but came in above the $529.84 million projected by eight Street analysts.
Industrial Technology segment sales slid to $138.5 million from $161.7 million in the year-ago quarter. Energy Systems & Controls segment sales were $125.9 million, down from $137.6 million in the corresponding period last year. Scientific and Industrial Imaging segment sales advanced to $115.9 million from $93.3 million in the same period last year. RF Technology segment sales were $173.4 million, down from $183.3 million in the prior year period.
Orders were $565 million, an increase of 1% over the fourth quarter of the previous year,
Income from operations increased to $120.77 million from $119 million in the year-ago quarter. Operating margin was 21.8%, an increase of 110 basis points from the year-ago quarter, and operating cash flow was $120 million, representing 22% of revenue and 166% of net earnings.
Gross profit declined to $291.4 million from $297.8 million in the corresponding period last year.
Brian Jellison, Roper's chairman, president and chief executive officer, said, "Margins expanded as a result of strong execution, favorable leverage on increased sales compared to the third quarter, and the benefits of prior restructuring actions."
For the full year, net earnings declined to $239 million or $2.58 per share from $281.9 million or $3.01 per share in the previous year. Sales declined to $2.05 billion from $2.31 billion last year. Street analysts expected the company to report earnings of $2.61 per share on sales of $2.03 billion for 2009.
Looking ahead, for 2010 the company expects earnings per share to be between $2.83 and $3.03 with operating cash flow between $375 million and $400 million. Analysts currently expect the company to earn $2.83 per share for 2010.
Earnings per share for the first quarter are expected to be between $0.62 and $0.65, which excludes an expected $0.03 impact from fair value adjustments to acquisition-related inventory. Street analysts presently expect the company to earn $0.61 per share for the first quarter.
ROP is currently trading at $53.93, up 4.94% on the NYSE.
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