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The Zacks Consensus Estimate for Roper’s second-quarter earnings has increased 0.5% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 2%.
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.72 billion, indicating growth of 12.6% from the prior-year quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $4.46 per share, indicating 8.3% growth from the year-ago quarter’s reported number.
Let’s see how things have shaped up for Roper this earnings season.
Factors to Note
ROP’s Application Software segment’s second-quarter performance is expected to have benefited from strength across its Deltek, Strata, PowerPlan and Aderant businesses. The Deltek business is likely to have gained from solid demand for software as a service (SaaS) solutions. Growing adoption of SaaS solutions and continued GenAI innovation are likely to have been key catalysts to Aderant's business growth.
The Strata business is anticipated to have performed well backed by strong demand for its leading decision support and financial planning solutions in the healthcare market. Strong customer retention and the adoption of new SaaS solutions are expected to have aided the PowerPlan business. We anticipate the segment’s revenues to increase 19.1% year over year to $917.4 million.
Roper’s Network Software segment is anticipated to have performed strongly, driven by excellent bookings in the iPipeline business, arising from strong customer renewals, and expansion in the life insurance and annuities market. Our estimate for the Network Software segment’s revenues is pegged at $372.4 million, indicating a year-over-year increase of 4%.
Strength in the Neptune business, supported by continued demand for ultrasonic meters and increasing adoption of meter data management software, is expected to have driven the performance of the Technology Enabled Products segment. The solid momentum of the Verathon business, driven by strength across single-use BFlex & GlideScope offerings and continued BladderScan demand, is likely to have been a tailwind for the segment. We expect the Technology Enabled Products segment’s revenues to increase 7.7% to $434 million from the year-ago reported figure.
Synergistic gains from the acquisitions made by the company are expected to have boosted revenues. Roper acquired Procare Solutions in February 2024, which boosted its software offerings in the education sector. Also, the buyout of Syntellis Performance Solutions, in August 2023, expanded the company’s SaaS solutions portfolio.
In the second quarter, we expect the company’s total revenues to be $1.7 billion, indicating an increase of 12.6% year over year. Adjusted earnings are expected to be $4.43 per share, indicating a 7.6% increase from the year-ago quarter’s reported number.
However, escalating operating costs, owing to higher costs related to the amortization of acquired assets and high selling, general and administrative expenses, are likely to have impacted ROP’s margin performance. We expect general and administrative expenses to be $732.5 million for the second quarter, indicating an increase of 15.9% year over year.
Roper has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Our proven model predicts an earnings beat for ROP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Roper has an Earnings ESP of +1.68% as the Most Accurate Estimate is pegged at $4.53 per share, which is higher than the Zacks Consensus Estimate of $4.46. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Roper carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Computer and Technology sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
The company is scheduled to release second-quarter results on Jul 31. Axcelis’ earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 18.9%.
Apple Inc. (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of 2. The company is slated to release third-quarter fiscal 2024 (ended June 2024) results on Aug 1.
Apple’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.1%.
Arista Networks, Inc. (ANET - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank of 1. The company is slated to release second-quarter results on Jul 30.
Arista Networks’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.4%.
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Roper (ROP) Gears Up to Post Q2 Earnings: Is a Beat in Store?
Roper Technologies, Inc. (ROP - Free Report) is scheduled to release second-quarter 2024 results on Jul 24, before market open.
The Zacks Consensus Estimate for Roper’s second-quarter earnings has increased 0.5% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 2%.
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.72 billion, indicating growth of 12.6% from the prior-year quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at $4.46 per share, indicating 8.3% growth from the year-ago quarter’s reported number.
Let’s see how things have shaped up for Roper this earnings season.
Factors to Note
ROP’s Application Software segment’s second-quarter performance is expected to have benefited from strength across its Deltek, Strata, PowerPlan and Aderant businesses. The Deltek business is likely to have gained from solid demand for software as a service (SaaS) solutions. Growing adoption of SaaS solutions and continued GenAI innovation are likely to have been key catalysts to Aderant's business growth.
The Strata business is anticipated to have performed well backed by strong demand for its leading decision support and financial planning solutions in the healthcare market. Strong customer retention and the adoption of new SaaS solutions are expected to have aided the PowerPlan business. We anticipate the segment’s revenues to increase 19.1% year over year to $917.4 million.
Roper’s Network Software segment is anticipated to have performed strongly, driven by excellent bookings in the iPipeline business, arising from strong customer renewals, and expansion in the life insurance and annuities market. Our estimate for the Network Software segment’s revenues is pegged at $372.4 million, indicating a year-over-year increase of 4%.
Strength in the Neptune business, supported by continued demand for ultrasonic meters and increasing adoption of meter data management software, is expected to have driven the performance of the Technology Enabled Products segment. The solid momentum of the Verathon business, driven by strength across single-use BFlex & GlideScope offerings and continued BladderScan demand, is likely to have been a tailwind for the segment. We expect the Technology Enabled Products segment’s revenues to increase 7.7% to $434 million from the year-ago reported figure.
Synergistic gains from the acquisitions made by the company are expected to have boosted revenues. Roper acquired Procare Solutions in February 2024, which boosted its software offerings in the education sector. Also, the buyout of Syntellis Performance Solutions, in August 2023, expanded the company’s SaaS solutions portfolio.
In the second quarter, we expect the company’s total revenues to be $1.7 billion, indicating an increase of 12.6% year over year. Adjusted earnings are expected to be $4.43 per share, indicating a 7.6% increase from the year-ago quarter’s reported number.
However, escalating operating costs, owing to higher costs related to the amortization of acquired assets and high selling, general and administrative expenses, are likely to have impacted ROP’s margin performance. We expect general and administrative expenses to be $732.5 million for the second quarter, indicating an increase of 15.9% year over year.
Roper has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Roper Technologies, Inc. Price and Consensus
Roper Technologies, Inc. price-consensus-chart | Roper Technologies, Inc. Quote
Earnings Whispers
Our proven model predicts an earnings beat for ROP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Roper has an Earnings ESP of +1.68% as the Most Accurate Estimate is pegged at $4.53 per share, which is higher than the Zacks Consensus Estimate of $4.46. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Roper carries a Zacks Rank of 3.
Other Stocks to Consider
Here are some other companies within the broader Computer and Technology sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Axcelis Technologies, Inc. (ACLS - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release second-quarter results on Jul 31. Axcelis’ earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 18.9%.
Apple Inc. (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of 2. The company is slated to release third-quarter fiscal 2024 (ended June 2024) results on Aug 1.
Apple’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.1%.
Arista Networks, Inc. (ANET - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank of 1. The company is slated to release second-quarter results on Jul 30.
Arista Networks’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.