SARASOTA, Fla. (AP) -- In a story July 29 about Roper Industries Inc.'s quarterly earnings, The Associated Press erroneously reported that Roper's second-quarter earnings missed Wall Street expectations. The story compared Roper's net income of $1.11 per share to the average analyst estimate of $1.30 per share. However, the analyst estimate excluded one-time items and should have been compared with Roper's adjusted earnings of $1.31 per share. By that measure, Roper beat analysts' estimate by a penny.
A corrected version of the story is below:
Roper 2Q earnings decline on quality issue
Roper 2Q profit dips slightly after quality issue; cuts full-year earnings guidance
SARASOTA, Fla. (AP) -- Roper Industries' second-quarter net income fell 3 percent after the medical and industrial equipment maker booked charges to replace a faulty part sold to some customers.
A refrigeration system valve component made by a vendor "did not meet our quality standards," the company said Monday. The exchanges led to pretax charges of $9.1 million, or 6 cents per share, in the quarter. Roper is continuing talks with the vendor on the issue.
Full-year profit and revenue guidance was cut and shares of Roper Industries Inc. slipped by about 1.7 percent in premarket trading. The company's stock is still trading near all-time highs.
The company earned $111.4 million, or $1.11 per share, for the quarter that ended June 30. That was down from $114.8 million, or $1.15 per share, during the same period last year. Excluding the charge and purchase accounting adjustments, however, Roper would have earned $1.31 per share in the latest period.
Revenue rose 8 percent to $784 million, from $724.9 million a year earlier.
Analysts surveyed by FactSet had been expecting a profit of $1.30 per share on revenue of $806.7 million.
Roper cut its 2013 adjusted earnings guidance to between $5.72 and $5.86 per share, down from $5.76 to $5.94 previously. Analysts were expecting $5.83 per share, on average.
Roper said revenue in the second half of the year will grow 6 percent to 8 percent, not counting acquisitions and currency adjustments. That range is 1 percent lower than it had previously predicted.