Roper Technologies Prepares for Earnings Report Amidst Market Challenges
Expected Earnings Show Steady Growth Despite Stock Decline
Sarasota, Florida-based Roper Technologies, Inc. (ROP) continues to excel by designing vertical software and technology products for various niche markets. With a market capitalization of $55.2 billion, Roper operates in sectors such as Application Software, Network Software, and Technology Enabled Products.
The company is scheduled to announce its fourth-quarter earnings before the markets open on Thursday, January 30. Analysts are optimistic, predicting a non-GAAP profit of $4.76 per share, reflecting an 8.9% increase from the $4.37 reported in the same quarter last year. Roper has consistently exceeded Wall Street’s expectations, posting better-than-expected results for the past four quarters. For the last reported quarter, the adjusted EPS grew 6.9% year-over-year to $4.62, surpassing estimates by 2%.
Looking ahead, Roper is projected to achieve an adjusted EPS of $18.29 for fiscal 2024, showing a 9.5% increase from the $16.71 earned in fiscal 2023. For fiscal 2025, non-GAAP earnings are anticipated to rise by 8.9% year-over-year to $19.92.
Over the past 52 weeks, Roper’s stock has declined by 3.1%, significantly lagging behind the S&P 500 Index, which has risen by 27.2%, and the Technology Select Sector SPDR Fund, which gained 29.7% during the same period.
Despite impressive revenue and earnings growth, Roper’s stock saw a nearly 1.7% dip after the Q3 results were released on October 23. The company reported a significant year-over-year increase of 12.9% in net revenues, reaching $1.8 billion; however, its organic revenue growth was a more modest 4%. Additionally, selling, general, and administrative expenses rose by 11.5% year-over-year to $725.1 million. The company experienced a contraction in adjusted EBITDA margins, with a drop of 125 basis points from the prior year to about 42%, resulting in a slower adjusted EBITDA growth of 9.6%, totaling $741 million.
On a brighter note, Roper’s total operating cash flow for the previous three quarters has seen a remarkable increase of 18.2% year-over-year, reaching $1.7 billion.
The consensus outlook on ROP stock remains moderately positive, carrying an overall “Moderate Buy” rating. Among the 14 analysts covering the stock, six recommend “Strong Buy,” one advises “Moderate Buy,” six suggest “Hold,” and one rates it as a “Strong Sell.” The average price target of $605.33 suggests a potential upside of 19.4% from current price levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data are provided solely for informational purposes. For further details, please view the Barchart Disclosure Policy here. More news from Barchart.
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