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The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised upward by 1.5% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 3.8%.
Let's see how things have shaped up for Roper this earnings season.
Strong customer demand and a robust pipeline of orders are likely to have driven Roper’s second-quarter performance.
Strength across enterprise-class customers, government contracting and private sector solutions within Deltek business, and record bookings and the adoption of SaaS models within Aderant are expected to have boosted the performance of the Application Software segment. The Zacks Consensus Estimate for Application Software revenues indicates a 20.5% jump from the year-ago reported figure. We expect Application Software revenues to increase 18% from the second quarter of 2022 reported figure.
The Network Software segment is expected to reflect higher revenues due to the strong performance of freight-matching businesses, strength in the Foundry business, and robust bookings, retention and customer expansion within the iPipeline business. The consensus mark for Network Software revenues hints at a 5.5% increase from the year-ago reported figure. We expect Network Software revenues to increase 9% from the year-ago reported figure.
Strength in the Neptune business due to increased demand for residential and commercial ultrasonic static meters and rising manufacturing productivity is expected to have aided the Tech-enabled Products unit’s performance in the to-be-reported quarter. We expect the segment’s revenues to augment 9% from the year-ago reported figure.
The Frontline Education, which has expanded Roper’s presence in the K-12 education market, is expected to have boosted the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for ROP’s second-quarter 2023 revenues suggests a 14.1% rise from the year-ago reported figure. We expect the company’s revenues to increase 13.6% from the second quarter of 2022 reported figure.
However, supply chain constraints within the Technology Enabled Products segment are likely to have hurt Roper’s second-quarter performance. Escalating cost of sales and selling, general and administrative expenses are likely to have dented the company’s bottom line in the soon-to-be-reported quarter.
Given Roper’s considerable international exposure, foreign currency headwinds are expected to have affected its top line.
Earnings Whispers
Our proven model does not conclusively predict 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 not the case here, as elaborated below.
Earnings ESP: ROP has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $4.00. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ROP presently carries a Zacks Rank of 2.
Highlights of Q1 Earnings
Roper’s first-quarter 2023 adjusted earnings of $3.90 per share surpassed the Zacks Consensus Estimate of $3.85. On a year-over-year basis, earnings increased 3.5%. Net sales of $1,469.7 million beat the Zacks Consensus Estimate of $1,442 million. The top line increased 14.8% year over year. Organic sales in the quarter increased 8%, owing to strength across each of the three segments. Acquisitions boosted sales by 8%. However, movements in foreign currency translation had an adverse impact of 1%.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Image: Bigstock
Can Roper (ROP) Retain Beat Streak This Earnings Season?
Roper Technologies (ROP - Free Report) is scheduled to release second-quarter 2023 results on Jul 21, before market open.
The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised upward by 1.5% in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 3.8%.
Let's see how things have shaped up for Roper this earnings season.
Roper Technologies, Inc. Price and EPS Surprise
Roper Technologies, Inc. price-eps-surprise | Roper Technologies, Inc. Quote
Factors to Note
Strong customer demand and a robust pipeline of orders are likely to have driven Roper’s second-quarter performance.
Strength across enterprise-class customers, government contracting and private sector solutions within Deltek business, and record bookings and the adoption of SaaS models within Aderant are expected to have boosted the performance of the Application Software segment. The Zacks Consensus Estimate for Application Software revenues indicates a 20.5% jump from the year-ago reported figure. We expect Application Software revenues to increase 18% from the second quarter of 2022 reported figure.
The Network Software segment is expected to reflect higher revenues due to the strong performance of freight-matching businesses, strength in the Foundry business, and robust bookings, retention and customer expansion within the iPipeline business. The consensus mark for Network Software revenues hints at a 5.5% increase from the year-ago reported figure. We expect Network Software revenues to increase 9% from the year-ago reported figure.
Strength in the Neptune business due to increased demand for residential and commercial ultrasonic static meters and rising manufacturing productivity is expected to have aided the Tech-enabled Products unit’s performance in the to-be-reported quarter. We expect the segment’s revenues to augment 9% from the year-ago reported figure.
The Frontline Education, which has expanded Roper’s presence in the K-12 education market, is expected to have boosted the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for ROP’s second-quarter 2023 revenues suggests a 14.1% rise from the year-ago reported figure. We expect the company’s revenues to increase 13.6% from the second quarter of 2022 reported figure.
However, supply chain constraints within the Technology Enabled Products segment are likely to have hurt Roper’s second-quarter performance. Escalating cost of sales and selling, general and administrative expenses are likely to have dented the company’s bottom line in the soon-to-be-reported quarter.
Given Roper’s considerable international exposure, foreign currency headwinds are expected to have affected its top line.
Earnings Whispers
Our proven model does not conclusively predict 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 not the case here, as elaborated below.
Earnings ESP: ROP has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $4.00. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: ROP presently carries a Zacks Rank of 2.
Highlights of Q1 Earnings
Roper’s first-quarter 2023 adjusted earnings of $3.90 per share surpassed the Zacks Consensus Estimate of $3.85. On a year-over-year basis, earnings increased 3.5%. Net sales of $1,469.7 million beat the Zacks Consensus Estimate of $1,442 million. The top line increased 14.8% year over year. Organic sales in the quarter increased 8%, owing to strength across each of the three segments. Acquisitions boosted sales by 8%. However, movements in foreign currency translation had an adverse impact of 1%.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Stanley Black & Decker (SWK - Free Report) has an Earnings ESP of +12.23% and a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stanley Black pulled off a trailing four-quarter earnings surprise of 25.3%, on average. The stock has rallied 22.6% in the past three months.
Tenaris (TS - Free Report) has an Earnings ESP of +6.27% and a Zacks Rank #3. The company is slated to release second-quarter results on Aug 2.
Tenaris delivered a trailing four-quarter earnings surprise of 9.2%, on average. The stock has gained around 4% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.