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Sarasota, Florida-based Roper Technologies, Inc. (ROP) operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Valued at $55.2 billion by market cap, Roper operates through Application Software, Network Software, and Technology Enabled Products segments.
The software giant is set to unveil its fourth-quarter earnings before the market opens on Thursday, Jan. 30. Ahead of the event, analysts expect Roper to report a non-GAAP profit of $4.76 per share, up 8.9% from $4.37 per share reported in the year-ago quarter. Furthermore, Roper has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 6.9% year-over-year to $4.62, exceeding analysts’ estimates by 2%.
For fiscal 2024, Roper is expected to deliver an adjusted EPS of $18.29, up 9.5% from $16.71 in fiscal 2023. While in fiscal 2025, its non-GAAP earnings are expected to grow 8.9% year-over-year to $19.92.
Roper stock prices have declined 3.1% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 27.2% gains and the Technology Select Sector SPDR Fund’s (XLK) 29.7% returns during the same time frame.
Despite delivering better-than-expected revenues and earnings, Roper stock prices dipped nearly 1.7% after the release of its Q3 results on Oct. 23. The company reported a notable 12.9% year-over-year growth in net revenues to $1.8 billion, however, its organic revenues increased by a modest 4%. Meanwhile, its selling, general, and admin expenses increased 11.5% year-over-year to $725.1 million. The company also observed an adjusted EBITDA margin contraction of 125 basis points compared to the year-ago quarter to approximately 42%, which led to a lower 9.6% adjusted EBITDA growth than revenue growth, reaching $741 million.
On a more positive note, the company’s aggregate operating cash flow for the previous three quarters has increased by an impressive 18.2% year-over-year to $1.7 billion.
The consensus opinion on ROP stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 14 analysts covering the stock, six recommend “Strong Buy,” one advises “Moderate Buy,” six suggest “Hold,” and one advocates a “Strong Sell” rating. Its mean price target of $605.33 indicates a 19.4% upside potential from current price levels.
