Roper Technologies Stock Gains After Q2 Earnings: How Did It Perform?

Roper Technologies Inc ROP reported second-quarter FY23 revenue growth of 17% year-over-year to $1.53 billion, which topped the consensus of $1.50 billion. Organic revenue grew 9% Y/Y. Adjusted EPS of $4.12 beat the consensus of $3.99.

Sales by segments: Application Software $770.3 million (+22.8% Y/Y), Network Software $358.1 million (+4.4% Y/Y), Technology Enabled Products $402.8 million (+18.3% Y/Y).

Gross margin increased by 20 basis points at 69.7%.

Roper held $1.46 billion in cash and equivalents by the end of the quarter.

CEO Neil Hunn said, "The enhanced quality of our enterprise, ongoing expansion of our recurring revenue base, and continued positive momentum across our businesses provide the foundation for our increased full-year outlook." "With substantial M&A firepower, we continue to evaluate many high-quality acquisition opportunities and remain well positioned to deploy capital utilizing our disciplined and process-driven methodology."

FY23 Outlook: Roper raised its full-year 2023 adjusted earnings to $16.36 - $16.50, compared to the previous guidance of $16.10 - $16.30 vs. the consensus of $16.30.

For the third quarter of 2023, the company expects adjusted earnings of $4.16 - $4.20 vs consensus $4.16.

ROP Price Action: Roper Technologies shares traded higher by 3.67% at $499.27 on the last check Friday.