We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Roper Technologies (ROP) Up 10% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Roper Technologies (ROP - Free Report) . Shares have added about 10% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Roper Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Roper Beats on Q3 Earnings, Raises 2023 EPS Guidance
Roper’s third-quarter 2023 adjusted earnings of $4.32 per share surpassed the Zacks Consensus Estimate of adjusted earnings of $4.21 per share. On a year-over-year basis, earnings increased 17.7%.
Roper’s net revenues of $1,563.4 million beat the consensus estimate of $1,539 million. The top line increased 15.8% year over year. Organic sales in the quarter increased 6%, owing to strength across each of the three segments. Acquisitions boosted sales by 9%.
Segmental Performance
Roper has divested its Process Technologies segment and industrial units of the Measurement & Analytical Solutions segment. Beginning in the second quarter of 2022, the company started reporting under three segments namely, Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $803.4 million, representing 51.4% of the quarter’s top line. On a year-over-year basis, the segment’s revenues increased 25%. Organic sales in the quarter increased 5%.
Network Software & Systems generated revenues of $364.1 million, accounting for 23.3% of third-quarter revenues. Segmental revenues grew 5% year over year. Organic sales in the quarter increased 5%.
The Technology Enabled Products segment generated revenues of $395.9 million, accounting for 25.3% of the quarter’s revenues. Sales were up 10% year over year. Organic sales in the quarter grew 10%.
Margin Profile
In the reported quarter, Roper’s cost of sales increased 14.4% year over year to $467.1 million. Gross profit in the quarter grew 16.4% to $1,096.3 million while the gross margin increased to 70.1% from 69.7% in the year-ago quarter.
Selling, general and administrative expenses increased 18.5% to $650.2 million. Adjusted EBITDA was $652 million, reflecting year-over-year growth of 18%. The margin increased 60 basis points to 41.7%. Interest expenses increased 2.7% year over year to $42.4 million.
Balance Sheet & Cash Flow
Exiting third-quarter 2023, Roper had cash and cash equivalents of $299.5 million compared with $792.8 million at the end of December 2022. Long-term debt (net of current portion) was $6,379.0 million compared with $5,962.5 million at the end of the fourth quarter of 2022.
Roper generated net cash of $1,413.3 million from operating activities in the first nine months of 2023, reflecting a decline of 113.2% from the year-ago level. Capital expenditure totaled $37.8 million compared with $30 million in the year-ago quarter.
In the first nine months of 2023, ROP rewarded its shareholders with a dividend payment of $217.5 million, up 10.9% year over year.
2023 Outlook
ROP has increased its 2023 guidance. The company predicts adjusted earnings per share (EPS) from continuing operations of $16.62-$16.66 compared with $16.36-$16.50 stated earlier. The Zacks Consensus Estimate for the same is $16.45.
For the fourth quarter, Roper anticipates EPS to be $4.28-$4.32. The consensus estimate for the same is $4.21.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Roper Technologies has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Roper Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Roper Technologies (ROP) Up 10% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Roper Technologies (ROP - Free Report) . Shares have added about 10% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Roper Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Roper Beats on Q3 Earnings, Raises 2023 EPS Guidance
Roper’s third-quarter 2023 adjusted earnings of $4.32 per share surpassed the Zacks Consensus Estimate of adjusted earnings of $4.21 per share. On a year-over-year basis, earnings increased 17.7%.
Roper’s net revenues of $1,563.4 million beat the consensus estimate of $1,539 million. The top line increased 15.8% year over year. Organic sales in the quarter increased 6%, owing to strength across each of the three segments. Acquisitions boosted sales by 9%.
Segmental Performance
Roper has divested its Process Technologies segment and industrial units of the Measurement & Analytical Solutions segment. Beginning in the second quarter of 2022, the company started reporting under three segments namely, Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $803.4 million, representing 51.4% of the quarter’s top line. On a year-over-year basis, the segment’s revenues increased 25%. Organic sales in the quarter increased 5%.
Network Software & Systems generated revenues of $364.1 million, accounting for 23.3% of third-quarter revenues. Segmental revenues grew 5% year over year. Organic sales in the quarter increased 5%.
The Technology Enabled Products segment generated revenues of $395.9 million, accounting for 25.3% of the quarter’s revenues. Sales were up 10% year over year. Organic sales in the quarter grew 10%.
Margin Profile
In the reported quarter, Roper’s cost of sales increased 14.4% year over year to $467.1 million. Gross profit in the quarter grew 16.4% to $1,096.3 million while the gross margin increased to 70.1% from 69.7% in the year-ago quarter.
Selling, general and administrative expenses increased 18.5% to $650.2 million. Adjusted EBITDA was $652 million, reflecting year-over-year growth of 18%. The margin increased 60 basis points to 41.7%. Interest expenses increased 2.7% year over year to $42.4 million.
Balance Sheet & Cash Flow
Exiting third-quarter 2023, Roper had cash and cash equivalents of $299.5 million compared with $792.8 million at the end of December 2022. Long-term debt (net of current portion) was $6,379.0 million compared with $5,962.5 million at the end of the fourth quarter of 2022.
Roper generated net cash of $1,413.3 million from operating activities in the first nine months of 2023, reflecting a decline of 113.2% from the year-ago level. Capital expenditure totaled $37.8 million compared with $30 million in the year-ago quarter.
In the first nine months of 2023, ROP rewarded its shareholders with a dividend payment of $217.5 million, up 10.9% year over year.
2023 Outlook
ROP has increased its 2023 guidance. The company predicts adjusted earnings per share (EPS) from continuing operations of $16.62-$16.66 compared with $16.36-$16.50 stated earlier. The Zacks Consensus Estimate for the same is $16.45.
For the fourth quarter, Roper anticipates EPS to be $4.28-$4.32. The consensus estimate for the same is $4.21.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Roper Technologies has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Roper Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.