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Roper (ROP) to Report Q3 Earnings: What's in the Offing?

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Roper Technologies, Inc. (ROP - Free Report) is scheduled to release third-quarter 2021 results on Oct 22, before market open.

The company delivered better-than-expected results in the last four quarters, with an earnings surprise of 4.62%, on average. In the last reported quarter, its earnings of $3.76 per share surpassed the Zacks Consensus Estimate of $3.66.

In the past three months, Roper’s shares have lost 4.7% compared with the industry’s decline of 5.8%.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Let us delve deeper.

Key Factors and Estimates for Q3

Roper benefitted from strengthening end markets and recovering global macroeconomic activities in the second quarter of 2021. The same trend is expected to have continued in the third quarter and get reflected on its results. Also, investments in product innovation, robust recurring revenue base, solid operational execution and shareholder-friendly policies are likely to have aided.

Synergistic gains from acquisitions and benefits from any divestment activities are other tailwinds for the quarter. Notably, Roper’s second-quarter sales increased 12% year over year on the back of acquisitions/divestitures. On the flip side, higher costs and expenses as well as headwinds from international exposure are likely to have played spoilsport.

For third-quarter 2021, Roper anticipates earnings of $3.80-$3.84 per share. The Zacks Consensus Estimate for the company’s earnings is pegged at $3.86, suggesting a year-over-year increase of 21.8% and sequential growth of 2.7%. Also, the consensus estimate for revenues is pegged at $1,624 million, indicating a year-over-year increase of 18.9% and sequential growth of 2.3%. The consensus estimate for the company’s earnings is pegged at $3.86, suggesting a year-over-year increase of 21.8% and sequential growth of 2.7%.

On a segmental basis, the company expects improvements in healthcare and education markets as well as solid Aderant, Data Innovations, Deltek, and CliniSys businesses to have benefitted Application Software in the third quarter. Meanwhile, solid ConstructConnect and DAT businesses on the back of solid customer retention, market recovery and network expansion are expected to have aided Network Software & Systems.

Measurement & Analytical Solutions is anticipated to have gained from strength across Verathon, Neptune, and medical and industrial businesses in the quarter under review. Also, improving end markets are predicted to have benefitted Process Technologies.

The Zacks Consensus Estimate for Roper’s third-quarter revenues is pegged at $1,624 million, indicating a year-over-year increase of 18.9% and sequential growth of 2.3%. The consensus estimate for the company’s earnings is pegged at $3.86, suggesting a year-over-year increase of 21.8% and sequential growth of 2.7%.

On a segmental basis, the Zacks Consensus Estimate for Application Software’s sales, pegged at $600 million, suggests a year-over-year increase of 33.9% and sequential growth of 1.4%. The consensus estimate of $469 million for Network Software & Systems indicates growth of 9.1% and 2.2% from the respective year-ago and sequentially reported numbers. For Measurement & Analytical Solutions, the consensus estimate of $411 million suggests a rise of 11.7% from the year-ago reported number and 3.5% growth from the sequential figure. The consensus estimate for Process Technologies, pegged at $147 million, suggests year-over-year growth of 22.5% and a sequential increase of 5%.

Earnings Whispers

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

Earnings ESP: Roper has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate pegged at $3.86.

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

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

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

Deere & Company (DE - Free Report) has an Earnings ESP of +5.55% and it currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Columbus McKinnon Corporation (CMCO - Free Report) presently has an Earnings ESP of +5.26% and a Zacks Rank #2.

Plug Power, Inc. (PLUG - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.