Back to top

Image: Bigstock

Roper Q4 Earnings Top Estimates, Application Software Sales Up Y/Y

Read MoreHide Full Article

Roper Technologies’ (ROP - Free Report) fourth-quarter 2024 adjusted earnings of $4.81 per share surpassed the Zacks Consensus Estimate of $4.72. The bottom line increased 10% on a year-over-year basis.

Roper’s net revenues of $1.88 billion beat the consensus estimate of $1.83 billion. The top line increased 16% year over year. Organic revenues grew 7%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 9%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

For 2024, Roper reported net revenues of $7.04 billion, which increased 14% year over year. For the year, the company’s adjusted earnings were $18.31 per share, up 10% year over year.

Roper’s Segmental Performance in Q4

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

Application Software’s revenues totaled $1.06 billion, representing 56.3% of the quarter’s top line. Our estimate was $1.0 billion. The segment’s revenues increased 24.1% on a year-over-year basis. Organic revenues increased 6%. Solid momentum in the company’s Deltek, Aderant and Vertafore businesses augmented the segment’s performance.

Network Software & Systems generated revenues of $373.5 million, accounting for 19.9% of the quarterly top line. Our estimate was $376.1 million. Segmental revenues grew 3% year over year. Organic revenues increased 3%. Strong momentum in ConstructConnect and iPipeline businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (MHA, SHP & SoftWriters) augmented the results.

The Technology Enabled Products segment generated revenues of $446.7 million, accounting for 23.8% of the quarter’s top line. Our estimate was $438.1 million. Sales were up 12% year over year. Organic revenues grew 12%. 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 21.8% year over year to $594.8 million. Gross profit increased 14% to about $1.28 billion while the gross margin decreased to 68.3% from 69.7% in the year-ago quarter.

Selling, general and administrative expenses increased 14.4% year over year to $757.6 million. Adjusted EBITDA was $744 million, reflecting year-over-year growth of 13%. The margin decreased 120 basis points to 39.6%. Interest expenses (net) increased 41.3% year over year to $70.8 million.

Balance Sheet & Cash Flow of Roper

Exiting the fourth quarter of 2024, Roper had cash and cash equivalents of $188.2 million compared with $214.3 million at the end of December 2023. Long-term debt (net of current portion) was $6.58 billion compared with $5.83 million at the end of 2023.

Roper generated net cash of $2.39 billion from operating activities in 2024, reflecting an increase of 17.6% from the year-ago level. Capital expenditure totaled $66 million compared with $68 million in the year-ago period.

In 2024, ROP rewarded its shareholders with a dividend payment of $321.9 million, up 10.9% year over year.

Roper’s Outlook

For 2025, Roper expects adjusted earnings per share from continuing operations to be in the range of $19.75-$20.00. Total revenues are expected to increase more than 10%. Organic revenues are anticipated to increase 6-7% from the year-ago number.

For the first quarter of 2025, Roper anticipates adjusted earnings to be in the band of $4.70-$4.74 per share.

ROP’s Zacks Rank & Key Picks

The company currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:

Graham Corporation (GHM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 (ending March 2025) earnings has remained stable.

Resideo Technologies (REZI - Free Report) presently carries a Zacks Rank #2 (Buy). REZI delivered a trailing four-quarter average earnings surprise of 27.3%.

In the past 60 days, the consensus estimate for Resideo Technologies’ 2024 earnings has been stable.

Enersys (ENS - Free Report) currently carries a Zacks Rank of 2. ENS delivered a trailing four-quarter average earnings surprise of 1.6%.

In the past 60 days, the consensus estimate for Enersys’ fiscal 2025 (ending March 2025) earnings has increased 10.2%.

Published in