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What's in the Offing for Roper (ROP) This Earnings Season?

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Roper Technologies, Inc. (ROP - Free Report) is scheduled to release second-quarter 2022 results on Jul 22, before market open.

The Zacks Consensus Estimate for ROP’s second-quarter earnings has been revised downward by a penny in the past 60 days. However, the company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 2%.

Let’s see how things are shaping up for Roper this earnings season.

Roper Technologies, Inc. Price and EPS Surprise

Roper Technologies, Inc. Price and EPS Surprise

Roper Technologies, Inc. price-eps-surprise | Roper Technologies, Inc. Quote

Factors to Note

Roper’s Application Software segment’s performance is expected to reflect strength across its Deltek, Aderant, CliniSys and Data Innovations businesses. The acquisition of American LegalNet in January is likely to have driven the Application Software segment’s performance. The Zacks Consensus Estimate for Application Software revenues in the second quarter indicates a 5.6% rise from the year-ago reported number.

Strong momentum across the Foundry, iTradeNetwork, iPipeline and rf IDEAS businesses, driven by favorable end markets, strong customer retention and network expansion, is likely to have aided the Network Software & Systems segment’s performance in the second quarter.

However, high cost of sales as well as selling, general and administrative expenses might have hurt Roper’s bottom line in the to-be-reported quarter. Supply chain constraints and raw material cost inflation are likely to have negatively affected the company’s performance.

Given Roper’s international presence, a strong U.S. dollar might have depressed its overseas business performance.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Roper this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Roper has an Earnings ESP of -1.53% as the Most Accurate Estimate is pegged at $3.76, lower than the Zacks Consensus Estimate of $3.82. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Roper carries a Zacks Rank #4 (Sell).

Highlights of Q1 Earnings

Roper reported first-quarter 2022 adjusted earnings of $3.77 per share, beating the Zacks Consensus Estimate of $3.69. Net revenues of $1,527 million surpassed the Zacks Consensus Estimate of $1,482 million. Both the top and bottom lines improved year over year owing to strong segmental performances.

Stocks to Consider

Here are some companies you may want to consider from the broader Zacks Computer and Technology sector as our model shows that these have the right combination of elements to post an earnings beat this season:

Advanced Energy Industries (AEIS - Free Report) has an Earnings ESP of +12.11% and a Zacks Rank #3. The company is scheduled to release second-quarter 2022 earnings numbers on Aug 3.

Advanced Energy Industries’ earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters, while missing in one. The average beat was 19.1%.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +1.32% and a Zacks Rank #3. The company is slated to release second-quarter 2022 financial results on Aug 2.

Advanced Micro Devices’ earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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