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Roper Q3 Earnings & Revenues Beat, Application Software Sales Rise Y/Y

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Roper Technologies’ (ROP - Free Report) third-quarter 2024 adjusted earnings of $4.62 per share surpassed the Zacks Consensus Estimate of $4.53. Earnings increased 7% on a year-over-year basis.

Roper’s net revenues of $1.77 million beat the consensus estimate of $1.72 billion. The top line increased 13% year over year. Organic revenues grew 4%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 9%.

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Segmental Performance of Roper

The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.

Application Software’s revenues totaled $984.4 million, representing 55.8% of the quarter’s top line. Our estimate was $927.5 million. The segment’s revenues increased 23% on a year-over-year basis. Organic revenues increased 5%. Solid demand for logos and continued customer expansion within the Aderant business augmented the segment’s performance.

Network Software & Systems generated revenues of $367.1 million, accounting for 20.8% of quarterly revenues. Our estimate was $371.7 million. Segmental revenues grew 1% year over year. Organic revenues increased 1%. Strength in the ConstructConnect business supported the segment’s performance.

The Technology Enabled Products segment generated revenues of $413.1 million, accounting for 23.4% of the quarter’s revenues. Our estimate was $423.4 million. Sales were up 4% year over year. Organic revenues grew 4%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.

Roper Technologies, Inc. Price, Consensus and EPS Surprise

 

Roper Technologies, Inc. Price, Consensus and EPS Surprise

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

ROP’s Margin Profile

Roper’s cost of sales increased 16.2% year over year to $542.9 million. Gross profit increased 11.4% to about $1.2 billion, while the gross margin decreased to 69.2% from 70.1% in the year-ago quarter.

Selling, general and administrative expenses increased 11.5% year over year to $725.1 million. Adjusted EBITDA was $717 million, reflecting year-over-year growth of 10%. The margin decreased 100 basis points to 40.7%. Interest expenses (net) increased 61.9% year over year to $68 million.

Balance Sheet & Cash Flow of Roper

Exiting the third quarter, Roper had cash and cash equivalents of $269.6 million compared with $214.3 million at the end of December 2023. Long-term debt (net of current portion) was $7.7 billion compared with $5.8 million at the end of 2023.

Roper generated net cash of $1.7 billion from operating activities in the first nine months of 2024, reflecting an increase of 18.2% from the year-ago level. Capital expenditure totaled $39.2 million compared with $37.8 million in the year-ago period.

In the first nine months of 2024, ROP rewarded its shareholders with a dividend payment of $241.1 million, up 10.9% year over year.

Roper’s Outlook

For 2024, Roper expects adjusted earnings per share from continuing operations of $18.21-$18.25 compared with the $18.10-$18.25 stated earlier. Total revenues are expected to increase 13% compared with the 12% guided earlier. Organic revenues are anticipated to increase 6% from the year-ago reported number.

For the fourth quarter, Roper anticipates adjusted earnings of $4.70-$4.74 per share.

ROP’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Logitech International S.A. (LOGI - Free Report) reported second-quarter fiscal 2025 non-GAAP earnings of $1.2 per share, which beat the Zacks Consensus Estimate of $1.1 and increased 10% year over year.

Logitech’s revenues of $1.12 billion outpaced the consensus mark of $1.09 billion. Moreover, the top line marked a year-over-year increase of 6% on a reported basis and 6% on a constant-currency basis, mainly driven by higher demand across key product categories and efficient inventory management.

CoStar Group (CSGP - Free Report) reported quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.16. This compares with earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.

CoStar posted revenues of $692.6 million for the September-ended quarter, which missed the consensus estimate by 0.55%. This compares with year-ago revenues of $624.67 million.

Vertiv Holdings Co. (VRT - Free Report) reported quarterly earnings of $0.76 per share, which beat the Zacks Consensus Estimate of $0.71. This compares with earnings of $0.52 per share reported a year ago. These figures are adjusted for non-recurring items.

Vertiv posted revenues of $2.07 billion for the September-ended quarter, which surpassed the consensus estimate by 4.64%. This compares with year-ago revenues of $1.74 billion. The company has topped the consensus estimate for revenues three times over the last four quarters.

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