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Roper (ROP) to Report Q2 Earnings: What's in the Offing?

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Roper Technologies, Inc. (ROP - Free Report) is slated to report second-quarter 2021 results on Jul 23, before market open.

The company’s earnings beat expectations in each of the trailing four quarters, the surprise being 6.47%, on average. In the last reported quarter, earnings of $3.60 per share surpassed the Zacks Consensus Estimate of $3.32 by 8.43%.

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In the past three months, the company’s shares have gained 12.1% against the industry’s decline of 3.7%.

Key Factors

Roper’s Network Software & Systems segment’s performance is expected to have benefited from solid momentum across DAT and ConstructConnect businesses, supported by improved end-market conditions and strong customer retention in the second quarter. The Zacks Consensus Estimate for second-quarter revenues for the Network Software & Systems segment is pegged at $459 million, indicating a 4.3% increase from the previous-quarter reported number.

The company’s Application Software segment is likely to have benefited from strength in its laboratory software business, including CliniSys and Sunquest. Also, recovery in the professional services end markets served by Roper’s Deltek business is likely to have augmented the segment’s top-line performance. The consensus mark for second-quarter revenues from Application Software is pegged at $584 million, suggesting 1.2% growth on a sequential basis.

Strong demand for medical products at the Verathon business is likely to have augmented the Measurement & Analytical Solutions segment’s performance in the to-be-reported quarter. The consensus mark for the segment’s revenues stands at $394 million, suggesting a 3.4% increase on a sequential basis.

Strength at the Cornell business on improving end-market conditions and product innovation efforts might have augmented Roper’s Process Technologies segment in the second quarter. The consensus estimate for Process Technologies revenues stands at $139 million, implying a 6.1% increase on a sequential basis.

However, the company has been dealing with the adverse impacts of high cost of sales and operating expenses. These might have affected its margins and profitability in the to-be-reported quarter.

Earnings Whispers

According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) to increase the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

But that is not the case here as we will see below.

Earnings ESP: Roper has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.66.

Roper Technologies, Inc. Price and EPS Surprise

Roper Technologies, Inc. Price and EPS Surprise

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

Zacks Rank: The company carries a Zacks Rank #2.

Key Picks

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Graco Inc. (GGG - Free Report) has an Earnings ESP of +7.31% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Flowserve Corporation (FLS - Free Report) has an Earnings ESP of +3.58% and a Zacks Rank of 2, at present.

Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 3.

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