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The Zacks Consensus Estimate for Roper’s second-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.4%.
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.93 billion, indicating growth of 12.2% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $4.82 per share, indicating 7.6% growth from the year-ago quarter’s number. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let’s see how things have shaped up for Roper this earnings season.
Factors to Note Ahead of ROP’s Results
ROP’s Application Software segment’s second-quarter performance is expected to have benefited from strength across its Deltek, Vertafore, PowerPlan and Aderant businesses. The growing adoption of SaaS solutions and continued GenAI innovation are likely to have been key catalysts to Aderant's business growth. The Deltek business is likely to have gained from the solid demand for SaaS solutions in the GovCon and private sectors, expanding GenAI functionality and increased enterprise bookings.
Strong customer retention and adoption of new SaaS solutions are expected to have driven the PowerPlan business. The Vertafore business is anticipated to have performed well, driven by excellent enterprise delivery capabilities to the largest customers in the market. We anticipate the segment’s revenues to increase 16% year over year to $1.08 billion.
The Technology Enabled Products segment is likely to have performed well driven by strength in the Neptune business due to continued demand for ultrasonic meters. Solid momentum in the Verathon and NDI businesses, supported by solid demand for BFlex & GlideScope offerings and cardiac & orthopedic surgical programs, is likely to have been tailwinds as well. We expect the segment’s revenues to increase 9.3% to $460.1 million from the year-ago figure.
Roper’s Network Software segment is expected to have benefited from strong momentum across construction and freight match markets. Solid demand for Gen AI-powered solutions within the ConstructConnect business is also anticipated to have benefited the segment. Continued growth in SoftWriters and SHP alternate site healthcare businesses is likely to have boosted the segment. Our estimate for the Network Software segment’s revenues is pegged at $381.5 million, indicating a year-over-year increase of 4.8%.
Synergistic gains from the acquisitions made by the company are expected to have boosted its top line. In December 2024, ROP completed the acquisition of Trucker Tools LLC, which strengthened its real-time GPS tracking and load optimization features on the DAT One platform. Roper acquired Procare Solutions in February 2024, which boosted its software offerings in the education sector.
Despite the positives, escalating operating costs, owing to higher costs related to the amortization of acquired assets and increased selling, general and administrative expenses, are likely to have impacted ROP’s margin performance. We expect selling, general and administrative expenses to be $782.7 million for the second quarter, indicating an increase of 12% year over year.
Given Roper’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
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: Roper has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate is pegged at $4.82 per share. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +4.48% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 24.
A. O. Smith’s earnings surpassed the Zacks Consensus Estimate in the last reported quarter by 5.6%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter fiscal 2025 results on Aug. 6.
EMR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 3.4%.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 30.
Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3%.
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Roper Gears Up to Post Q2 Earnings: What's in the Offing?
Key Takeaways
Roper Technologies, Inc. (ROP - Free Report) is scheduled to release second-quarter 2025 results on July 21, before market open.
The Zacks Consensus Estimate for Roper’s second-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 1.4%.
The Zacks Consensus Estimate for the company’s revenues is pegged at $1.93 billion, indicating growth of 12.2% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at $4.82 per share, indicating 7.6% growth from the year-ago quarter’s number. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Let’s see how things have shaped up for Roper this earnings season.
Factors to Note Ahead of ROP’s Results
ROP’s Application Software segment’s second-quarter performance is expected to have benefited from strength across its Deltek, Vertafore, PowerPlan and Aderant businesses. The growing adoption of SaaS solutions and continued GenAI innovation are likely to have been key catalysts to Aderant's business growth. The Deltek business is likely to have gained from the solid demand for SaaS solutions in the GovCon and private sectors, expanding GenAI functionality and increased enterprise bookings.
Strong customer retention and adoption of new SaaS solutions are expected to have driven the PowerPlan business. The Vertafore business is anticipated to have performed well, driven by excellent enterprise delivery capabilities to the largest customers in the market. We anticipate the segment’s revenues to increase 16% year over year to $1.08 billion.
The Technology Enabled Products segment is likely to have performed well driven by strength in the Neptune business due to continued demand for ultrasonic meters. Solid momentum in the Verathon and NDI businesses, supported by solid demand for BFlex & GlideScope offerings and cardiac & orthopedic surgical programs, is likely to have been tailwinds as well. We expect the segment’s revenues to increase 9.3% to $460.1 million from the year-ago figure.
Roper’s Network Software segment is expected to have benefited from strong momentum across construction and freight match markets. Solid demand for Gen AI-powered solutions within the ConstructConnect business is also anticipated to have benefited the segment. Continued growth in SoftWriters and SHP alternate site healthcare businesses is likely to have boosted the segment. Our estimate for the Network Software segment’s revenues is pegged at $381.5 million, indicating a year-over-year increase of 4.8%.
Synergistic gains from the acquisitions made by the company are expected to have boosted its top line. In December 2024, ROP completed the acquisition of Trucker Tools LLC, which strengthened its real-time GPS tracking and load optimization features on the DAT One platform. Roper acquired Procare Solutions in February 2024, which boosted its software offerings in the education sector.
Despite the positives, escalating operating costs, owing to higher costs related to the amortization of acquired assets and increased selling, general and administrative expenses, are likely to have impacted ROP’s margin performance. We expect selling, general and administrative expenses to be $782.7 million for the second quarter, indicating an increase of 12% year over year.
Given Roper’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Roper Technologies, Inc. Price and EPS Surprise
Roper Technologies, Inc. price-eps-surprise | Roper Technologies, Inc. Quote
Earnings Whisper
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: Roper has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate is pegged at $4.82 per share. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.
A. O. Smith Corporation (AOS - Free Report) has an Earnings ESP of +4.48% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 24.
A. O. Smith’s earnings surpassed the Zacks Consensus Estimate in the last reported quarter by 5.6%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter fiscal 2025 results on Aug. 6.
EMR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 3.4%.
Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2025 results on July 30.
Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3%.