雅虎香港財經 Roper (ROP) Gears Up to Post Q1 Earnings: What to Expect?
Roper Technologies, Inc. ROP is scheduled to release first-quarter 2024 results on Apr 26, before market open.
The Zacks Consensus Estimate for Roper’s first-quarter earnings has been unchanged 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 2%.
The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $1.65 billion, suggesting growth of 12.1% from the prior-year quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at $4.34 per share, indicating 11.3% growth from the year-ago quarter’s reported number.
Let’s see how things have shaped up for Roper this earnings season.
Factors to Note
ROP’s Application Software segment’s first quarter performance is expected to have benefited from strength in the Deltek, Vertafore, Strata, Frontline and Aderant businesses. The Deltek business is likely to have gained from continued SaaS strength, sustained momentum in the SMB channel and the private sector solutions. Growing adoption and cross-selling of SaaS solutions, and continued GenAI innovation are likely to have been key catalysts to Aderant unit’s growth in the quarter. The Frontline business is anticipated to have performed well backed by strong customer renewal and retention.
The acquisitions of MGA system and Syntellis and strength across core P&C business within the Vertafore business and solid demand for decision support and financial planning solutions within the Strata business are also expected to have aided the Application Software segment. We anticipate the segment’s revenues to increase 17% year over year to $890.8 million in the first quarter.
Roper’s Network Software segment is anticipated to have performed strongly driven by strength in DAT, Loadlink and Foundry businesses, robust bookings in the iPipeline business and growth in alternate site healthcare businesses (MHA, SHP & SoftWriters). Our estimate for the Network Software segment’s revenues in the first quarter is pegged at $359.3 million, indicating a year-over-year increase of 1.4%.
Strength in the company’s Neptune business due to continued demand for ultrasonic metes and increasing adoption of meter data management software is expected to have driven performance of the Technology enabled Products segment. Solid momentum of the Verathon business driven by strong demand for its solutions is likely to have been a tailwind. We expect the Tech-enabled Products segment’s revenues to increase 8.7% to $384.6 million from the year-ago reported figure.
Synergistic gains from the acquisitions made by the company are expected to have boosted revenues in the to-be-reported quarter. Roper acquired Syntellis Performance Solutions in August 2023, which boosted its Strata Decision Technology business. Also, the buyout of Frontline Education in October 2022 expanded ROP’s presence in the K-12 education market.
However, escalating operating costs and expenses, owing to increase in input cost and high selling, general and administrative expenses are likely to have impacted ROP’s margin performance in the first quarter. Also, given the company’s substantial international operations, foreign currency headwinds might have marred its margins and profitability.
Roper Technologies, Inc. Price and EPS Surprise
Roper Technologies, Inc. price-eps-surprise | Roper Technologies, Inc. Quote
What the Zacks Model Unveils
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, but that is not the case here, as elaborated below.
ROP has an Earnings ESP of -0.15%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Roper has a Zacks Rank #2 at present.
Stocks With Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release.
Vertiv Holdings Co VRT has an Earnings ESP of +1.24% and carries a Zacks Rank #2. It is slated to release first-quarter results on Apr 24. You can see the complete list of today’s Zacks #1 Rank stocks here. VRT delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Nutanix, Inc. NTNX has an Earnings ESP of +8.00% and a Zacks Rank of 3. The company is slated to release its upcoming results on May 22. Nutanix delivered a trailing four-quarter earnings surprise of 72.3%, on average.
CDW Corporation CDW has an Earnings ESP of +0.46% and a Zacks Rank #3. It is slated to release first-quarter results on May 1. CDW delivered a trailing four-quarter earnings surprise of 3.9%, on average.
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Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
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