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

Roper Technologies’ ROP 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 Q4The 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-eps-surprise-chart | Roper Technologies, Inc. QuoteROP’s Margin ProfileRoper’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 RoperExiting 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 OutlookFor 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 PicksThe company currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:Graham Corporation GHM 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 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 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%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Roper Technologies, Inc. (ROP): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Resideo Technologies, Inc. (REZI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks